Citigroup's Big Business Revamp Continues: Sells China Onshore Consumer Wealth Portfolio To HSBC

Citigroup Inc C disclosed its plan to sell its onshore consumer wealth portfolio in China to HSBC Holdings Plc's HSBC China division. 

The deal covers Citi's client base along with assets under management (AUM) and total deposits worth about $3.6 billion. 

The terms of the transaction, expected to close in H1 2024, were not disclosed. 

The deal is at par with Citigroup's announcement (December 2022) of divesting its consumer banking business in China and exiting consumer franchises in Asia, Europe, the Middle East, Mexico, and Africa.

This transaction does not include Citi's institutional operations in China. Also, the bank plans to keep serving ultra-high-net-worth Chinese individuals through its wealth centers in Singapore and Hong Kong.

"We are taking important steps forward in exiting our consumer banking business in China and continue to make progress in our divestitures as part of our strategy to simplify Citi. This is an excellent outcome for our local consumer wealth colleagues and clients in China," stated Titi Cole, Head of Legacy Franchises.

Also Read: Citigroup's Organizational Restructure: CEO Shakes Up Higher Executive Ranks

Since it disclosed its exit from consumer banking in 14 markets in 2021, Citigroup has reduced its footprint in eight markets, including India, Australia, Bahrain, Vietnam, Malaysia, the Philippines, Taiwan, and Thailand.

Notably, Citi looks forward to closing its Indonesian consumer business divestiture this year. Also, it is on track to achieve the previously announced closing of consumer business in Korea and exiting Russia.

Also Read: Citigroup CEO To Split Its Biggest Division To Gain More Control: Report

Moreover, the bank is also planning an IPO of its consumer, small business and middle-market banking operations in Mexico. 

Citigroup will release its Q3 results on October 13, 2023. 

Price Action: Citigroup shares are trading lower by 0.91% at $40.20 premarket on the last check Monday.