Citigroup (C), which is the only US company with a legitimate retail and institutional banking network across Asia, is continuing to exit most of its retail banking operations in the region. Last Thursday, the New York-based bank announced it will be selling its franchise operation in the Philippines to the local Union Bank of the Philippines for $908m.
Citi’s assets to be sold were worth around $355m last summer and include personal loans, retail bank deposits, the company’s local wealth management business and credit card operations, and several physical bank branches. Union Bank of the Philippines will also be taking on 1,750 Citi employees as part of the deal.
The deal is pending regulatory approval but is expected to close sometime in the second half of 2022.
Why it matters
Last April, Citigroup announced a plan to sell the majority of its consumer banking operations in 13 international markets to, instead, focus on growing its wealth management business. The only international operations Citi plans to keep open will be its Hong Kong, Singapore, London, and UAE businesses.
