UOB shapes up to be leading ASEAN bank

By Thuy Tuong
Thu, May 11, 2023 | 3:06 pm GMT+7

Singapore’s United Overseas Bank (UOB) is doubling down on its acquisition of Citigroup’s consumer banking businesses in Vietnam, Malaysia, Thailand, and Indonesia, winning two million clients from the buyout that has significantly boosted its retail banking.

A customer uses ATM services of UOB in Vietnam. Photo courtesy of UOB Vietnam.

A customer uses ATM services of UOB in Vietnam. Photo courtesy of UOB Vietnam.

The leading bank said Thursday that its completion of the merger with Citi's consumer banking arms in Malaysia, Thailand, and Vietnam had boosted its regional customer count from five million to over seven million as of the end of March. UOB has added 15 branches to its network across Malaysia, Thailand, and Vietnam.

The move brings its total number of branches in the three countries to over 200, at a time when UOB, Singapore’s third-largest bank, aims to take a bigger bite of Southeast Asia’s vast retail market.

UOB said more than 90% of Citi consumer banking employees in Vietnam, Thailand, and Malaysia have also moved to it, helping expand its regional workforce from 6,000 to about 10,000. Most of them are front-line workers.

The Singaporean lender announced in January 2022 that it would pay around $5 billion for Citi’s consumer banking franchise in Indonesia, Malaysia, Thailand, and Vietnam. It finished acquiring the Thailand and Malaysia units in November 2022, and the Vietnam business in March.

The latest completion of the Vietnam acquisition enabled UOB to serve about 200,000 customers in the country, UOB said Thursday.

UOB has finished rebranding Citi’s branches in Vietnam. Photo courtesy of UOB Vietnam.

UOB has finished rebranding Citi’s branches in Vietnam. Photo courtesy of UOB Vietnam.

With the completion of the acquisition in Indonesia by the end of 2023, these four markets are expected to provide a S$1 billion (more than $753 million) boost to UOB’s revenue on a full-year basis, the major lender added.

Jacquelyn Tan, UOB’s head of group personal financial services, said the Citi acquisition has helped her bank beef up its cards business and further diversify its income beyond deposits, secured loans such as mortgages and car loans, and wealth management.

The deal is expected to have grown UOB’s retail customer base in the region to around eight million by the end of this year from the current number, of more than seven million.

With Citigroup’s portfolio more geared towards cards business and unsecured lending, net credit card fees for UOB almost doubled year-on-year in the first quarter of 2023, with Citigroup’s portfolio contributing a quarter of this, and total income from UOB’s unsecured business is expected to almost double by the end of 2023, UOB said. Separately, loans and deposits also grew almost 10% and 15% in the first quarter of 2023 compared with a year before.

For the first quarter of 2023, ASEAN-4 (Malaysia, Thailand, Indonesia, and Vietnam) accounted for more than 35% of the UOB’s group personal financial services income.

“Our transformative decision to acquire Citigroup’s consumer businesses in the four ASEAN markets during the pandemic has proven to be very timely, positioning us well as consumer spending returns with a vengeance following the reopening of economies worldwide post-pandemic,” Tan said in her bank’s Thursday statement.

“As consumers look for the best in dining, travel, and retail at home and abroad, our unparalleled regional network, further boosted by this transformational deal, enables UOB to serve their unique lifestyle needs and preferences across ASEAN.

“Coupled with our partnerships with renowned brands domestically, regionally as well as globally, we offer the best deals, privileges, and perks to customers for all that they love,” she said.

According to her, UOB’s ASEAN markets used to account for 30% of its consumer banking income, with Singapore at 70%, but the region’s share will grow to 40% after the acquisition. Singapore, Malaysia, and Thailand will continue to be UOB’s strongholds, although Indonesia and Vietnam are seen as having big growth potential.

UOB claims it has garnered over 40 strategic partnerships with established brands across the region to offer more exclusive and customized rewards and privileges to both existing and new customers of the bank.

These partnerships, which include eight co-branded credit cards with key consumer brands across ASEAN, are in addition to more than 1,000 in-country deals, with all specially curated to the discerning preferences of the bank’s customers and bringing together like-minded partners whose focus was on building a strong regional presence.

UOB has just five branches in Vietnam, compared with 151 in Thailand and 55 in Malaysia, including the former Citi branches.

Comments (0)
  • Read More
Fund manager Eastspring Vietnam appoints new CEO

Fund manager Eastspring Vietnam appoints new CEO

Eastspring Vietnam, one of the largest fund managers in the country by assets under management, last Friday appointed Nguyen Quoc Dung as its new CEO and legal representative.

Finance - Mon, June 9, 2025 | 9:03 am GMT+7

U.S. Grains Council signs 5-year cooperation deal with Vietnam

U.S. Grains Council signs 5-year cooperation deal with Vietnam

The U.S. Grains Council (USGC) on Friday signed a five-year cooperation agreement with the Partnership for Sustainable Agriculture in Vietnam (PSAV), reaffirming its long-term commitment to Vietnam’s agricultural development.

Economy - Sun, June 8, 2025 | 5:13 pm GMT+7

Bamboo Capital announces senior personnel changes

Bamboo Capital announces senior personnel changes

Under a board of directors resolution effective last Friday, Vietnam's multi-sector conglomerate Bamboo Capital Group has a new deputy general director, while its first vice chairman Pham Minh Tuan resigned to focus on subsidiary Bamboo Energy.

Companies - Sun, June 8, 2025 | 4:05 pm GMT+7

Vietnam signs deals to import nearly $3 bln worth of US agricultural products

Vietnam signs deals to import nearly $3 bln worth of US agricultural products

Vietnamese businesses accompanying Minister of Agriculture and Environment Do Duc Duy on a six-day visit to the U.S. signed multiple agreements to import nearly $3 billion worth of American agricultural products, expanding bilateral cooperation in the agricultural sector.

Economy - Sun, June 8, 2025 | 10:33 am GMT+7

EPC contract signed for O Mon IV thermal power project in southern Vietnam

EPC contract signed for O Mon IV thermal power project in southern Vietnam

An EPC contract signing ceremony for the O Mon IV thermal power project in Can Tho city took place on Friday, at the headquarters of state-owned Petrovietnam - the investor.

Energy - Sun, June 8, 2025 | 8:00 am GMT+7

Vietnam's agri major Hoang Anh Gia Lai ventures into mulberry cultivation, coffee production

Vietnam's agri major Hoang Anh Gia Lai ventures into mulberry cultivation, coffee production

After overcoming two major obstacles - debt and accumulated losses - Vietnam's agri major Hoang Anh Gia Lai JSC (HoSE: HAG) is charting a bold five-year strategic roadmap, introducing two new business segments: mulberry cultivation and coffee-tea production.

Companies - Sat, June 7, 2025 | 4:35 pm GMT+7

Stock trading accounts hit 10 mln in Vietnam

Stock trading accounts hit 10 mln in Vietnam

Vietnam recorded a large increase in the number of stock trading accounts in April and May, when the U.S. tariff turbulence caused strong market fluctuations.

Finance - Sat, June 7, 2025 | 3:38 pm GMT+7

Thailand’s SCG books $301 mln in Q1 sales from Vietnam

Thailand’s SCG books $301 mln in Q1 sales from Vietnam

Siam Cement Group (SCG) reported sales of VND7.77 trillion ($301 million) in Vietnam in Q1/2025, reflecting the country as a key market for the Thai conglomerate in Southeast Asia.

Companies - Sat, June 7, 2025 | 9:54 am GMT+7

Vietnam’s energy firm identifies 3 emissions violations among Vietnamese enterprises

Vietnam’s energy firm identifies 3 emissions violations among Vietnamese enterprises

Looking ahead, 2030 is a milestone year, as major global brands such as Unilever, Nestlé, H&M, and Nike have committed to cutting Scope 1 and Scope 2 emissions by 50-65%, said Pham Dang An, CEO of Vu Phong Energy Group, a major developer of clean energy in Vietnam.

Companies - Sat, June 7, 2025 | 8:00 am GMT+7

Deal acquiring financial firm of Vietnam's SeABank invalid: Aeon Financial

Deal acquiring financial firm of Vietnam's SeABank invalid: Aeon Financial

Aeon Financial Service Co., Ltd. on Friday stated that its deal to purchase a financial company owned by Vietnam's SeABank is invalid due to "inappropriate accounting transactions."

Finance - Fri, June 6, 2025 | 11:57 pm GMT+7

VSAP LAB to build $69 mln chip packaging tech laboratory in central Vietnam

VSAP LAB to build $69 mln chip packaging tech laboratory in central Vietnam

Vietnamese private firm VSAP LAB JSC has been approved as the investor of a VND1.8 trillion ($69.11 million) advanced packaging technology laboratory project that will assist semiconductor production in the central city of Danang.

Industries - Fri, June 6, 2025 | 8:11 pm GMT+7

Vietnam's major property developer Hoang Huy successfully raises $30.7 mln from parent company

Vietnam's major property developer Hoang Huy successfully raises $30.7 mln from parent company

Hoang Huy Investment Services JSC (HoSE: HHS) has successfully issued 64 million shares for VND800 billion ($30.7 million) via private placement to its parent company – Hoang Huy Financial Services Investment JSC (TCH).

Companies - Fri, June 6, 2025 | 3:32 pm GMT+7

Subsidiaries, affiliates likely not to enjoy preferential corporate income tax in Vietnam

Subsidiaries, affiliates likely not to enjoy preferential corporate income tax in Vietnam

Subsidiaries and affiliates of enterprises in Vietnam might not be eligible for preferential corporate income tax (CIT) rates of 15-17%, in order to prevent abuse of incentives like splitting income for tax avoidance, according to the Financial and Economic Committee under the National Assembly, the country's legislature.

Finance - Fri, June 6, 2025 | 3:22 pm GMT+7

VPS Securities JSC named Vietnam’s best broker again by The Asset

VPS Securities JSC named Vietnam’s best broker again by The Asset

VPS Securities JSC (VPS) has once again been honored as the “Best Brokerage House in Vietnam” at the Triple A Awards 2025, presented by The Asset, a leading Asia-focused financial publication.

Companies - Fri, June 6, 2025 | 11:40 am GMT+7

Vietnam's agri major BAF eyes two 6-story buildings for pig farming in southern Vietnam

Vietnam's agri major BAF eyes two 6-story buildings for pig farming in southern Vietnam

BAF Vietnam Agriculture JSC has submitted a proposal to the Ministry of Agriculture and Environment to develop a smart pig farming complex including two six-story buildings in the southern provinces of Tay Ninh and Binh Phuoc.

Industries - Fri, June 6, 2025 | 11:20 am GMT+7

Food major Kido leaders reveal real estate ambitions

Food major Kido leaders reveal real estate ambitions

Leaders of Kido Group, a leading Vietnamese food and cooking oil producer, said they see many positive policies that are helping to ease real estate market difficulties and create favorable conditions for the company to develop projects on its land reserves.

Real Estate - Fri, June 6, 2025 | 11:03 am GMT+7