HSBC has agreed to purchase Citi’s retail wealth management portfolio in China, with a deal expected to close in the first half of 2024. Citi is exiting its consumer banking business in China and other global markets as part of a strategic refresh.
Facts
- HSBC is acquiring Citi’s retail wealth management portfolio in China, including deposits and investment assets worth $3.6 billion.
- Citi is exiting its consumer banking business in China, and the deal is expected to close in the first half of 2024.
- HSBC Bank China plans to extend employment offers to “in-scope employees” as part of the transaction.
- Titi Cole, Citi’s head of legacy franchises, describes the deal as an “excellent outcome” for Citi’s China clients and consumer wealth colleagues.
- The sale does not include Citi’s institutional businesses in China, which they claim to have a leading position in.
- Citi plans to continue serving China’s ultra-high net-worth individuals through regional hubs in Singapore and Hong Kong.
- Citi’s exit from consumer banking in China is part of a global “strategic refresh” that includes exiting consumer banking across 14 markets in Asia, Europe, the Middle East, and Mexico.
- Citi has already closed sales in eight markets and plans to close the sale of its Indonesia consumer business.
- Wind-downs in Korea and Russia are “in progress,” and Citi plans to pursue an IPO of its consumer, small business, and middle-market banking operations in Mexico.
