finance SingaporeMay 11, 11 p.m. 9:00 a.m
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UOB's acquisition of Citigroup's consumer banking business in four key ASEAN markets significantly increases its retail business and paves the way for an expanded customer base in the region through partnerships with well-known domestic and foreign brands.
UOB's completed acquisition of Citigroup's consumer banking business in Malaysia, Thailand and Vietnam has brought its regional retail customer base to more than 7 million annually. March 31, 2023, where the recently completed acquisition in Vietnam enabled the bank to serve approximately 200,000 clients in the domestic market. With the acquisition in Indonesia completed by the end of 2023, these four markets are expected to add S$1 billion to the bank's full-year revenue. The acquisition also builds greater resilience into the business model through geographic and revenue mix diversification. The bank's net credit card fees nearly doubled year over year in the first quarter of 2023, with Citigroup's portfolio contributing a quarter, and the bank's total unsecured business revenue is expected to nearly double by the end of 2023. Separately, loans and deposits also rose by nearly 10% and 15% annually in the first quarter of 2023.
In the first quarter of 2023, the ASEAN-4 countries (i.e. Malaysia, Thailand, Indonesia and Vietnam) accounted for more than 35% of the banking group's revenue from personal financial services. UOB has also added 15 branches to its branch network in Malaysia, Thailand and Vietnam by March 2023.
"Our transformative decision to take over Citigroup's consumer business in four ASEAN markets during the pandemic has proven very timely, with our positioning and return on consumer spending significantly increasing following the reopening of the global economy following COVID-19. Our unrivaled regional network, driven this transformational transaction, enables UOB to meet their unique lifestyle needs and preferences across ASEAN as consumers search for the best restaurants, travel and retail at home and abroad, combined with our partnerships with nationally, regionally and globally recognized brands, our we provide customers with the best rates, privileges and benefits to meet all their needs,” said Jacquelyn Tan, Head of Group Personal Financial Services, UOB.
Expand regional franchising and strengthen domestic capabilities
Following the acquisition, UOB expands its presence in ASEAN to build the bank's leading position in Visa consumer cards and MasterCard consumer credit card portfolio. Number of UOB cards[1]Credit card charges in the region increased by more than 60% year-on-year to 31 December 2022. Total credit card charges in the region also increased by more than 90% in the fourth quarter of 2022 compared to the same period last year year, which is almost double the level before COVID 2019.
UOB Credit Card's total ASEAN cross-border billing in the first quarter of 2023 has almost tripled compared to the same period last year.
Domestically, UOB's dominance in credit cards is undisputed. There are approximately 1.3 million UOB credit cards in use today, which means that one in two cardholders in Singapore has a UOB credit card. In addition, the bank also operates UOB Rewards+, the largest transaction, cashback and rewards program in Singapore, offering more than 50,000 transactions, cashback and rewards at more than 60,000 merchant locations and through the UOB TMRW app.
The numbers are good for the bank and are in line with optimistic forecasts for ASEAN and the Asia-Pacific region compared to the rest of the world. Forecast of the International Monetary Fund (IMF).[2]Overall gross domestic product (GDP) growth in the Asia-Pacific region is expected to grow by 4.6% this year, up 0.6% from last year and well above the forecast global growth of 2.8% in 2023, the IMF also expects the region to drive more than 70 percent of this year's global economic expansion. Closer to home, the Asian Development Bank[3]GDP growth in Southeast Asia is expected to remain at 4.7% this year, even despite global headwinds.
Consumer spending in ASEAN will also increase, driven by a growing middle-class population. World Economic Forum[4](WEF) predicts that 70% of ASEAN's population will be middle class by 2030, driving total spending to more than double to nearly $4 trillion. By the end of the decade, the World Economic Forum predicts that millennials will[5]and Generation Z[6]They will account for 75% of ASEAN consumers. Charges for UOB credit and debit cardholders in Singapore will rise by nearly 40% in the first quarter of 2023 compared to last year, according to World Economic Forum forecasts among 18-23 year olds. Cardholders aged 18-39 also took advantage of more rewards associated with card spending, with total redemption volume exceeding 30% over the same period, up from nearly 25% year-over-year growth in Q1 2022.
With the rise of ASEAN and the acquisition of Citigroup strengthening UOB's presence in the region, UOB is best positioned to capture cross-border payments and wealth flows with its broad regional presence. From secured loans and deposits, to asset management and credit card products, the strengthened UOB franchise will bring its customers an unrivaled regional perspective and reach, accessible through a regional network of branches and digital devices, and based on personalized to their unique lifestyle and needs.
Partner with well-known regional and global brands to serve ASEAN clients
Referring to cardholder spending patterns over the past year, UOB has identified three key spending categories to further enhance its offering. The three categories of travel, dining and retail formed the platform for card usage growth last year. Travel spending will more than double by 2021, with restaurant and retail spending up 45% and nearly 30%, respectively.
UOB has entered into more than 40 strategic partnerships with well-known brands in the region, offering more exclusive and customized rewards and privileges to existing and new bank customers. With more than 1,000 domestic transactions, these partnerships include eight joint credit cards with major ASEAN brands, all specially selected based on the discerning preferences of the bank's customers and bringing together like-minded partners with a focus on building strong regional influence.
UOB offers unique regional offers, with rewards and privileges available to all UOB cardholders in ASEAN. Customers with UOB cards issued in Singapore will enjoy the same privileges as UOB cardholders in Thailand when spending at participating merchants in Thailand, while still being entitled to card benefits for overseas spending (where applicable).
New partnership highlights include a world-first partnership with leading wine rating agency Robert Parker, where UOB cardholders in Singapore, Indonesia, Malaysia, Thailand and Vietnam can look forward to exclusive wine pairings from Michelin-starred chefs. Dinners and well-prepared wine masterclasses for gourmets of all levels. This is Robert Parker's first collaboration with a financial institution, and its regional reach is also a pioneering approach for the company. The partnership enhances the bank's customer offering in the dining room and is the perfect complement to UOB's previously announced partnership with Michelin Guides in Thailand and Malaysia.
Following last year's announcement of a strategic partnership with local luxury purveyor Club 21, UOB will team up with leading British designer, Paul Smith, in its first partnership with a financial institution to enhance its lifestyle offering. Paul Smith's iconic designs will feature on exclusive merchandise for UOB cardholders with a buy-to-let campaign featuring more than 5,000 limited-edition Paul Smith accessories, including Apple AirPods cases[7]and the backpacks will be given away to UOB cardholders in Singapore, Indonesia, Malaysia, Thailand and Vietnam as long as they spend the minimum amount on the card within the year, while supplies last.
As a strategic partnership with MINI in the ASEAN region, UOB will collaborate with the traditional British premium car manufacturer to organize a regional lucky draw this year. Paul Smith is a long-time partner of the car brand, which has launched the iconic MINI Paul Smith Edition since 1999, and oneUOB card users in Singapore, Indonesia, Malaysia, Thailand and Vietnam will win a limited series of MINI models exclusively designed by Paul Smith.
With offers and rewards for every lifestyle and life stage, UOB aims to do the right thing for customers, anytime, anywhere. As the largest consumer banking bank in ASEAN and the largest card issuer in the region, UOB is proud to bring together well-known global brands to provide its customers with the best services in dining, travel and retail. As part of UOB's comprehensive card launch, the bank will launch a brand new film to highlight the regional reach and global strength of its cards. The couple featured in the film represent the aspirations of UOB's ASEAN customers, representing their love for travel, food, retail and experiences. The film will be shown on free-to-air television channels in Singapore, Malaysia, Thailand and Vietnam, as well as on Singapore Airlines' KrisWorld in-flight entertainment system from 11 May 2023.
O UOB u
United Overseas Bank is a leading bank in Asia. Operating through its headquarters in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, UOB has a global network of approximately 500 offices in 19 countries and territories in the Asia Pacific region, Europe and North America. Since its founding in 1935, UOB has grown organically through a series of strategic acquisitions. Today, UOB is rated among the best banks in the world: Aa1 by Moody's Investors Service and AA- by S&P Global Ratings and Fitch Ratings.
For almost nine years, UOB has taken a customer-centric approach to creating long-term value through its entrepreneurial spirit to stay relevant and do what's right for customers. UOB is focused on building the future of ASEAN – for the people and businesses within and connected to ASEAN.
With its unrivaled regional footprint, the bank connects business with opportunities in the region and uses data and insights to innovate and create personalized banking experiences and solutions to meet the unique needs and changing preferences of each customer. UOB is also committed to helping companies build a sustainable future by promoting social inclusion, creating a positive impact on the environment and striving for economic progress. UOB is committed to being a responsible financial services provider with unwavering support for the arts, social development and children's education, and doing what is right for society and stakeholders.
[1]Includes MasterCard and Visa
[2]Asia Pacific Department (IMF) press conference in April 2023.
[3]ADB forecasts economic growth of 4.8 percent in Asia and the Pacific in 2023 and 2024 (ADB)
[4]Spending Outlook in Fast-Growing Consumer Markets: ASEAN (WEF)
[5]People born from 1981 to 1995
[6]People born from 1996 to 2012
[7]Apple Airpods comes with a case
source:PR Newswire/InfoQuest
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PR Newswire/InfoQuest
FAQs
Who is buying Citibank Vietnam? ›
NEW YORK - Citi announced today it has completed the sale of its Vietnam retail banking and consumer credit card businesses to United Overseas Bank Limited (UOB), which includes the transfer of approximately 575 related staff.
What happened to Citibank Malaysia? ›Singapore – Citi announced today it has completed the sale of Citi's Malaysia and Thailand retail banking and consumer credit card businesses to United Overseas Bank Limited (UOB) subsidiaries, which includes the transfer of over 3,000 related staff.
Who took over Citibank Malaysia? ›Citi Malaysia announced that it has received regulatory approval by Bank Negara Malaysia (BNM) for UOB's acquisition of Citi's Consumer banking business in Malaysia.
Is Citibank closing in Thailand? ›Citi to sell consumer business in Malaysia, Indonesia, Thailand and Vietnam to UOB Group. Citigroup will sell its consumer banking businesses in Indonesia, Malaysia, Thailand and Vietnam to Singapore's United Overseas Bank, the banks announced Friday.
Who is buying Citibank China? ›UOB, Southeast Asia's third-largest bank, is acquiring Citi's unsecured and secured lending portfolios, wealth management and retail deposit businesses in the four countries. This includes 24 branches. Citi's consumer business in the markets employs about 5,000 employees, who will be transferred to UOB.
What is happening to Citibank? ›Citibank's consumer business in India will be transferred to Axis Bank, as of March 1, 2023.
Is UOB taken over Citibank? ›Upon completion of the acquisition of Citi's consumer banking business in Malaysia by United Overseas Bank (Malaysia) Bhd (“UOB”) on 1 November 2022 (Effective Date), the financing and repayment of your accounts from the Effective Date will then be reported by UOB.
Why did UOB acquire Citibank? ›The acquisition is part of UOB's strategy to scale up its ASEAN retail business outside of its home market of Singapore. Once completed, the acquisition is expected to double UOB's existing retail customer base in the four markets to 5.3 million customers and add 5,000 people to its team strength.
Is UOB and Citibank the same? ›You may still access and manage your Citi accounts as usual, using your existing Citi cards, app and services - including Citi Mobile® App, Citibank Online, CitiPhone®, ATMs and Citi branches, even after their rebranding to UOB ("former Citi branches”, listed here) from April 2023 onwards.
Why Citibank is leaving? ›CEO Jane Fraser said that the group lacks the scale to compete with the domestic lenders in India, even though the market has excellent business. Citigroup announced its exit from India in May 2021.
Is Citibank leaving Asia? ›
Citi announced its plan to exit China consumer banking in April 2021, which is part of its broader global strategy refresh to exit consumer franchises in 14 markets in Asia, Europe, Middle East and Africa and Mexico.
Is Citibank leaving China? ›The group had announced plans in April 2021 to exit its Chinese consumer banking business as part of a global strategy to withdraw from consumer franchises in 14 markets in Asia, Europe, the Middle East, Africa and Mexico.
Why Citibank is leaving Thailand? ›Citibank is pulling out from personal banking in Thailand after 54 years, blaming increased market competition.
What American banks are operating in Thailand? ›- American Express Bank.
- BofA Securities.
- Citibank Thailand.
- JPMorgan Chase.
NEW YORK - Citi announced today it has completed the sale of its India consumer business to Axis Bank Limited (Axis). The sale, which Citi and Axis first announced in March 2022, includes credit cards, retail banking, wealth management and consumer loans, as well as the transfer of approximately 3,200 Citi employees.
Why did Citibank leave Asia? ›First announced in April 2021, the bank said it wanted to focus on international wealth centres in Hong Kong, Singapore, the United Arab Emirates and the United Kingdom and leave markets where it lacks scale to compete.
Who owns the biggest bank of China? ›ICBC is a state-owned bank and the largest bank in China by both total assets and revenue. It provides a range of financial products and services to individuals, corporations, and government agencies. CCB is another state-owned bank and the second largest bank in China by total assets.
Who owns Citibank now? › Why is Citibank closing so many branches? ›
“As our clients and communities increasingly self-isolate, we have noticed shifts in foot traffic and market dynamics — so, to best meet our changing customer needs, we have begun to temporarily close branches where and when it makes sense,” the bank said in a statement to Bloomberg.
Is Citibank going under? ›Based on the latest financial disclosure, Citigroup has a Probability Of Bankruptcy of 2.0%. This is 95.99% lower than that of the Banks sector and significantly higher than that of the Financials industry. The probability of bankruptcy for all United States stocks is 94.98% higher than that of the company.
Is Citi laying off employees? ›
Citigroup layoffs 2023: Citigroup is cutting hundreds of jobs across the company, with the Wall Street giants investment banking division among those affected. Citigroup layoffs 2023: Citigroup is cutting hundreds of jobs across the company, with the Wall Street giants investment banking division among those affected.
Which bank will convert Citibank? ›Branches & ATMs Bank Account & Debit Card Demat & Investments Insurance Credit Cards Pursuant to this sale, Citi's consumer business in India will be duly transferred to Axis Bank and will henceforth be part of Axis Bank business and your accounts will continue with existing product features, services and charges.
Which bank took over Citibank? ›As Axis Bank initiates integration, businessline takes a look at its impact on Citibank's retail customers. Axis Bank has completed the acquisition of Citibank India's consumer banking business effective March 01, 2023.
Which is better Citibank or HSBC? ›Citi scored higher in 8 areas: Overall Rating, Diversity and Inclusion, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook.
What will happen to existing Citibank credit card? ›Citibank's consumer business in India will be transferred to Axis Bank, as of March 1, 2023.
Which four markets did UOB acquire Citi consumer banking units? ›The lender's acquisition was announced early last year, with UOB buying Citi's unsecured and secured loan portfolios plus its wealth management and retail deposit businesses in Thailand, Malaysia, Indonesia and Vietnam for about SG$4.9 billion.
What is the difference between Citibank and Citigroup? ›Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries. Citigroup is incorporated in Delaware.
What is the other name of UOB Bank? ›About UOB Group
Founded by Datuk Wee Kheng Chiang, United Overseas Bank (UOB) was incorporated on 6 August 1935 as the United Chinese Bank; the change of name was effected in 1965.
The sale was completed on 1 June 2022 (the Transfer Date) and NAB is now the provider of your products and services.
Are Citi and Chase the same bank? ›The two big national banks Chase and Citibank have similar products and fees (and ways to waive them), but they differ in some ways. Consider what's important in your banking life, whether that means nearby ATMs or branch access, and read on to see how the banks compare.
What is the Citigroup controversy? ›
Regulators hit the bank with a $400 million fine and a pair of consent orders in late 2020, demanding sweeping improvements to risk management and controls after the bank accidentally wired $900 million to Revlon creditors.
Is Citigroup leaving Russia? ›The company will incur the charges through 2024, it said in a regulatory filing. Citi, which had the largest presence in Russia among U.S. banks, nearly two years ago said it would exit the retail business in the country as part of a retreat from some overseas markets.
Is Citigroup pulling out of consumer banking in China? ›Citigroup Inc said it will wind down its consumer banking business in China, a move which is expected to affect about 1,200 employees in the country. The exit will include products such as deposits, insurance, mortgages, investments, loans and cards, the lender said in a statement Thursday.
Is Citibank leaving Mexico? ›Additional information about the operations Citi intends to exit in Mexico will be included in the 2021 fourth quarter earnings report on January 14, 2022. A link to Citi's Current Report on Form 8-K filed today regarding the exit can be found here.
Why did Citibank leave Japan? ›The Financial Services Agency ordered Citibank to shut the four branches in Japan where it offers private banking services to wealthy customers after the agency discovered a string of violations and improprieties over the last three years.
Who is buying Citibank in Asia? ›Singapore – Citi today announced it has reached agreement with UOB Group (UOB) on the acquisition of Citi's consumer banking franchises in Indonesia, Malaysia, Thailand and Vietnam.
Why Citibank is leaving Taiwan? ›Citigroup was eager to sell it's consumer finance business as profit margin in this sector had fallen to less than 3%, though Citigroup's corporate finance business saw profit margins as high as 27%, according to Liberty Times.
Who are Citibank competitors in us? ›- Citi.
- HSBC.
- Bank of America.
- Wells Fargo.
- JPMorgan Chase.
- Morgan Stanley.
- BNP Paribas.
- NatWest Group.
Citibank Russia (Russian: Ситибанк) is a Russian commercial bank, which is part of the financial corporation Citigroup.
Why is Citibank leaving Korea? ›High-cost structure and limited growth potential hindered the sale of consumer banking business. Citibank Korea has decided to close its consumer banking operations in phases, the bank said on Monday, after its attempt to find a buyer of the business fell through.
Is Citibank Global Transfer being discontinued? ›
We would like to inform you that effective 17 June 2022, Citibank Global Transfer (CGT) and Global View of Accounts (GVA) for United States (US) will be discontinued for Citi Mobile® App and Citibank Online, where applicable.
Can Americans have a bank account in Thailand? ›In principle, a foreigner who has no proof of residence in Thailand can only open a non-resident bank account; however, some Thai-based banks may, depending on their internal policy and discretion, accommodate requests from non-resident customers in opening a resident account with no proof of residence.
What is the most international American bank? ›- HSBC - Best for long term expats. ...
- Charles Schwab - Best for frequent international ATM withdrawals. ...
- Citibank - Best for global transfers. ...
- Capital One - Best for spending overseas. ...
- Travelling around or spending time in one country. ...
- Larger or smaller countries.
Wells Fargo does not have offices outside of the U.S. that provide services to consumer or small business customers. For assistance with your accounts when traveling internationally, refer to our international access codes for phone numbers, or visit our travel resource center.
Is Citibank leaving Korea? ›15 under phased exit by 2027. Citigroup Korea will no longer offer new retail service starting Feb. 15 while existing borrowers can roll over dues until the end of 2026 under the timeline of phasing out of consumer business in Korea.
Which bank is taking over Citibank? ›Yes, your Citi account will remain the same after the acquisition by Axis Bank. Citibank's consumer business in India will be transferred to Axis Bank, as of March 1, 2023.
Who acquired Citibank business? ›Seven Total Divestitures Completed as Part of Citi's Strategy Refresh. NEW YORK - Citi announced today it has completed the sale of its India consumer business to Axis Bank Limited (Axis).
Why Citibank closing retail banking? ›3) What is the rationale behind the decision? Recently, Citi announced its decision to focus its Global Consumer Bank presence in Asia, Europe and the Middle East to key global wealth centers and exit 13 other markets. In line with this, Citi will pursue an exit from its consumer franchise in India.
Is Chase Bank better than Citibank? ›The bottom line: Citi® offers more compelling savings accounts and CDs than Chase. Citi also makes it easier to waive monthly service fees on checking accounts. Both banks have been involved in public controversies and are tied for trustworthiness.
What is the new name of Citibank? ›There will be no change in account number, IFSC, MICR codes. You can continue to use your Debit, ATM, Citi India consumer banking customers are now served by Axis Bank. Citi India has transferred ownership of its consumer bankingbusiness to Axis Bank (registration number L65110GJ1993PLC020769).
Is Citibank owned by US Bank? ›
Citibank is owned by Citigroup, a U.S.-based investment bank and financial services corporation headquartered in New York, NY. Citigroup was founded in 1998 and has owned Citibank ever since.
Does BlackRock own Citi? ›Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 163.47MM shares of Citigroup Inc (C). This represents 8.4% of the company.
Is Capital One owned by Citibank? ›Capital One is a subsidiary of Capital One Financial Corporation, a U.S.-based bank holding company headquartered in McLean, Virginia and founded in 1994. Capital One has been a subsidiary of Capital One Financial Corporation since it was established as a separate division of the company in 1994.
Who is the largest shareholder of Citibank? ›| Name | Equities | % |
|---|---|---|
| The Vanguard Group, Inc. | 159,373,081 | 8.20% |
| SSgA Funds Management, Inc. | 85,950,514 | 4.42% |
| Berkshire Hathaway, Inc. (Investment Management) | 55,155,797 | 2.84% |
| BlackRock Fund Advisors | 44,670,924 | 2.30% |
Citigroup, American financial services corporation formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. Its headquarters are in New York City.
Is Morgan Stanley owned by Citibank? ›The combined entity generates about $14 billion in net revenue, has 18,500 financial advisors, 1,000 locations worldwide and serves about 6.8 million households. Citigroup disclosed on September 17, 2009, they would sell their remaining shares in the group to partner Morgan Stanley.