Citi To Sell Onshore Consumer Wealth Portfolio In China To HSBC

(RTTNews) - Citi said that it has agreed to sell its onshore consumer wealth portfolio in China, including clients, assets under management or AUM and deposits to HSBC Bank China. Terms of the transaction were not disclosed. The transaction covers total deposits and investment AUMs of about US$3.6 billion.

The deal is expected to close in the first half of 2024. The deal does not include Citi's institutional businesses in China.

HSBC plans to extend offers to in-scope employees supporting Citi's local consumer wealth business in China.

According to Citi, today's announcement progresses the wind-down of its consumer banking business in China, which was announced in December 2022. Citi first announced its plan to exit China consumer banking in April 2021 as part of the firm's broader global strategy refresh.

Since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh, Citi has now closed sales in eight markets including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.

Citi noted that it plans to complete the sale of its Indonesia consumer business later this year. In addition to China, the previously announced wind-downs of Citi's consumer business in Korea and overall presence in Russia are in progress.

Citi also announced that it will pursue an IPO of its consumer, small business and middle market banking operations in Mexico.