© Reuters. FILE PHOTO: View of Citibank headquarters in New York
By Anshuman Daga, Sumeet Chatterjee and Nupur Anand
SINGAPORE / HONG KONG (Reuters) – Banks including DBS Group (OTC :), Mitsubishi UFJ Financial Group (NYSE :), OCBC and Standard Chartered (OTC 🙂 are set to bid for parts of Citigroup (NYSE 🙂 of Asian consumer businesses who have firsthand knowledge of the matter told Reuters.
The sales will begin within a few weeks, they said, declining to name because they are not authorized to speak to the media.
The move comes after Citi said it would leave the consumer franchise in 13 markets, 10 of which are in Asia, as it focuses on institutional businesses and asset management. more profitable in these markets.
Citi said the businesses Citi was leaving had total assets of $ 82 billion and were allocated $ 7 billion in tangible equity last year, Citi said.
Since Citi does not relinquish its banking license in most of these markets, portfolio sales and consumer banking affiliates will attract only existing lenders in these countries.
“Asia plays a key role in our company’s strategy and we will allocate resources to drive profitable growth for our franchise,” said a Citi spokesperson in Hong Kong. , declined to comment on the sales process.
Representatives at Japanese lenders MUFG and StanChart, and Sumitomo Mitsui Financial Group (NYSE :), which sources said was another potential bidder, declined to comment.
“DBS is open to exploring reasonable starting opportunities in markets where we have consumer banking franchises (China, India, Indonesia and Taiwan)”, East’s largest lender South Asia said in a statement.
Citi’s extensive consumer business in India, including retail deposits, mortgages and credit cards, as well as its Taiwan business, will be among the valuable parts, according to sources. value in their Asian consumer category, according to sources.
DBS, the only major foreign bank to have a wholly owned Indian subsidiary, is eyeing Citi’s Indian business, which is also set up to attract StanChart, and donors. Local loans Kotak Mahindra Bank and Axis Bank, they said.
SBI Cards and Payment Services Ltd, a unit of the country’s leading State Bank of India, is also weighing a bid for the US bank’s credit card portfolio in India, two sources said. know.
Kotak Mahindra declined to comment. Axis Bank and SBI Cards did not immediately respond to a request for comment.
Citi’s consumer banking business in 13 markets accounts for $ 4.2 billion out of the bank’s total $ 74.3 billion in revenue by 2020. All the markets it’s exiting are making. consumer banking operations totaled 40 million dollars in the same year.