Singapore bank UOB said Wednesday it has finished the acquisition of Citigroup’s consumer banking business in Vietnam, which includes the transfer of about 575 Citigroup-related staff members to UOB Vietnam.
The consumer business includes Citigroup’s unsecured and secured lending portfolios, wealth management and retail deposit businesses.
The deal follows UOB’s completions in Thailand and Malaysia in November 2022. Its acquisition of Citigroup’s Indonesian consumer banking business is set for completion by end-2023.
UOB’s acquisitions in the four markets are expected to further strengthen and scale up its franchise in Southeast Asia. Once completed, the acquisitions in the four markets will double UOB’s existing retail customer base and add 5,000 staff members to its workforce.
“We look forward to accelerating the expansion of our retail business in Vietnam, which is one of the fastest-growing economies in the region,” said UOB deputy chairman and CEO Wee Ee Cheong.
“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 said.
Both UOB and Citigroup did not disclose the total transaction value for the four ASEAN markets or for each. However, UOB said in January 2022 that Citigroup had agreed on the entire transaction for about $3.7 billion.
UOB Vietnam announced Wednesday it has made senior appointments to drive its enlarged retail business in the market. Fred Lim was named as head of retail transformation, channels and digitalization, and business banking. Paul Kim was appointed as head of personal financial services, also at UOB Vietnam.
The Singapore major bank said UOB Vietnam has worked closely with Citigroup Vietnam to ensure a seamless transition for customers, which is expected to take 12 to 18 months as UOB works towards a full system integration.
During the transition period, Citigroup Vietnam’s consumer banking customers can expect a continuation in the product offerings, services and benefits. They can also look forward to a wider range of solutions and offers from UOB’s larger franchise, the Singapore bank added.
Existing UOB Vietnam customers will also benefit from an expanded suite of unsecured products, including credit cards and unsecured personal loans, which complement UOB’s existing lending solutions.
Victor Ngo, CEO of UOB Vietnam, said, “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 swift digital adoption.”
As one of the fastest-growing economies in ASEAN, Vietnam is a strategic market for UOB as the bank continues to intensify its focus and investment in the region, the international lender highlighted.
For its retail business in Vietnam, UOB is looking forward to offering consumers from the middle-income to affluent and high-net-worth segments an improved suite of banking products. UOB Vietnam will also build digital capabilities as part of investing in its omnichannel strategy which ensures customers’ myriad banking needs and preferences are met.