UOB U11 has completed the acquisition of Citigroup’s consumer banking business in Vietnam on March 1. The move includes the transfer of some 575 Citigroup-related staff to UOB Vietnam. The business includes Citigroup’s unsecured and secured lending portfolios, wealth management and retail deposit businesses.
The completion comes on the back of the completions in Thailand and Malaysia in November 2022.
UOB aims to complete the acquisition of Citi’s Indonesian consumer banking business by the end of 2023.
Once completed, the acquisitions are expected to double UOB’s existing retail customer base in the four markets and add 5,000 people to its team strength.
Vietnam, which is one of the fastest-growing economies in Asean, is a strategic market for UOB. This comes at a time where the bank seeks to grow its focus and investment in the region.
In its statement, the bank aims to enhance its retail business in Vietnam by providing a better range of banking products to customers in the middle-income to affluent and high-net-worth segments. In order to cater to a wider customer base, UOB Vietnam plans to invest in digital capabilities and develop an omni-channel strategy that caters to the diverse banking needs and preferences of its customers.
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Following the completion of the acquisition, UOB Vietnam has appointed Fred Lim as its head of retail transformation, channels and digitalisation and business banking while Paul Kim has been named its head of personal financial services.
In their reports for UOB’s FY2022 results, analysts were positive on UOB’s acquisition of Citi’s retail assets as they saw the move as a means for UOB to “accelerate, scale up and deepen its Asean franchise”. UOB is also seeing “good traction” in its takeover, they note.
“We are now one step closer to the full completion of this transformational deal. Early results of the acquisition have surpassed our expectations. We look forward to accelerating the expansion of our retail business in Vietnam, which is one of the fastest growing economies in the region,” says Wee Ee Cheong, deputy chairman and CEO of UOB.
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“With our expanded network, ecosystem partners and suite of solutions and capabilities, we are well-placed to serve the needs of our enlarged customer base. With the addition of new colleagues, we have a stronger team to drive our ambition to be a truly regional bank that helps our customers achieve their financial aspirations,” he adds.
“The acquisition of Citigroup’s consumer banking business in Vietnam comes at the right time and reinforces our long-term strategy and commitment to the market. The potential for the people and businesses in Vietnam is tremendous as it is an economy of rapid growth and transformation, coupled with the swift digital adoption. The completion of our acquisition marks the next chapter of our growth, which provides us a great platform for leadership in retail banking through an enlarged portfolio, expanded footprint and partner ecosystem,” says Victor Ngo, CEO of UOB Vietnam.
Shares in UOB closed 1 cent higher or 0.03% up at $29.93 on March 1.
