Citi Group Photo: VCG

Citi Group Monday announced that it has agreed to sell its onshore consumer wealth portfolio in China and associated business to HSBC (China). This is part of Citi's strategy, but the company noted that it continues to firmly serve corporate and institutional clients in China.

The transaction covers total deposits and investment AUMs worth approximately $3.6 billion. Terms of the transaction were not disclosed, and the deal is expected to close in the first half of 2024. 

Monday's announcement progresses the wind-down of Citi's 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.

This announcement does not include Citi's institutional business in China, where the bank has a leading position. 

Citi will continue to serve the needs of affluent to ultra-high net worth Chinese individuals through its regional wealth hubs in Singapore and Hong Kong, leveraging its International Personal Bank and Citi Private Bank businesses.  

Citi first opened in China in 1902 and became one of the first global banks to incorporate locally in 2007. Today, Citi serves 70 percent of Fortune 500 companies, as well as over 300 leading local enterprises and many more emerging new-economy companies. 

"The transaction serves the interest of our clients, colleagues and all parties involved. Citi is proud to have a long history in China. We are deeply rooted in this market. We look forward to continuing to support our institutional clients in China as their preeminent banking partner for cross-border needs," said Christine Lam, Citi China Country Officer and President of Citibank (China) Co. 

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, and India. 

Citi 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 ROK 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. 

Global Times