Citi announced the completion of the sale and migration of its Indonesia consumer businesses to UOB Indonesia (UOBI), covering retail banking, credit card, and unsecured lending businesses, along with employee transfers. The sale of these consumer businesses to UOB has generated a regulatory capital benefit of around US$1.1 billion. This move is part of Citi's larger strategic plan to exit consumer banking in various global markets.
The agreement for this transition was first made known in January 2022. This transaction is part of a broader sale agreement announced in Jan. 2022, covering consumer banking in Malaysia, Thailand, Vietnam, and Indonesia. With the completion of sales in Malaysia, Thailand, Vietnam, and Indonesia, Citi has closed consumer banking transactions in nine out of 14 markets included in its strategic refresh to exit consumer banking across Asia, Europe, the Middle East, and Mexico, according to a press release by Citi.
Reflecting on this significant development, According to a press release by Citi, Titi Cole, Citi’s Head of Legacy Franchises said: "Completing our final divestiture of a full consumer franchise in Asia marks a significant milestone in simplifying the firm. This is a testament to the commitment of our employees across these markets and a clear demonstration of Citi’s ability to execute on our strategy. We are sincerely grateful to our former employees in Indonesia and wish them the very best in their careers with UOB."
Reiterating Citi's ongoing commitment towards its institutional business, According to a press release by Citi, Batara Sianturi,Citi Country Officer for Indonesia said: "Citi is proud to have a long history in Indonesia, and we are intently focused on growing Citi’s institutional businesses in Indonesia, serving clients in the market, regionally and globally through our network to support cross-border needs."
Regarding Citi's ongoing strategic plans, Citi is currently in the process of winding down its consumer businesses in China and Korea, as well as reducing its overall presence in Russia. Additionally, Citi has restarted the exit process for its consumer banking business in Poland. The company also has plans to pursue an initial public offering (IPO) for its consumer, small-business, and middle-market banking operations in Mexico, according to a press release by Citi.