15th September 2022 - 2 min read
UOB has obtained regulatory approval from Bank Negara Malaysia (BNM) for its acquisition of Citi’s consumer banking business in Malaysia, following the agreement between the two banks earlier this year.
With this update, UOB and Citi will next need to apply for a vesting order from the High Court to transfer Citi’s consumer banking assets and liabilities to UOB. The transaction is expected to be completed by the fourth quarter of 2022, with UOB taking over Citi’s retail banking and consumer credit card businesses, as well as its consumer bank employees and supporting staff.
Commenting on acquisition, the chief executive officer of UOB Malaysia, Ng Wei Wei said that this will scale up UOB’s retail business with an expanded portfolio and partner ecosystem. “It further strengthens UOB Malaysia’s outreach to customers through a wider network of branches and digital touchpoints,” she stated, adding that this will result in greater connectivity and higher brand recognition.
Meanwhile, the chief executive officer of Citi Malaysia, Usman Ahmed promised that the bank will continue to serve its consumer clients seamlessly up until the completion of the sale process. “Citi remains deeply committed to Malaysia, and we will invest further in our market-leading institutional clients’ franchise to help our Malaysian clients grow in the country and abroad,” he said. He also noted that the bank will share the date for the legal transfer in due course.
Citi had first announced its intention to exit retail banking in a total of 13 markets in April 2021 as part of the bank’s strategy to streamline its global business. Aside from Malaysia, this decision also impacted its business in Thailand, Vietnam, the Philippines, China, and India – just to name some. The bank eventually agreed to sell its business in Malaysia – along with those in Indonesia, Thailand, and Vietnam – to UOB in January 2022, after reviewing bids from multiple banks, including Standard Chartered Bank and Hong Leong Bank.
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