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DBS Takes Over Citi in Taiwan

Singapore’s banking giant, DBS, has finalized its takeover of Citi’s consumer banking division in Taiwan. This move places DBS as the predominant foreign bank in Taiwan by asset valuation.

DBS’s Strategic Acquisition

Thanks to this acquisition, DBS Taiwan has seen its consumer banking customer base grow exponentially, now numbering over 1.1 million. Additionally, their portfolio of investment assets has skyrocketed to an impressive $8.85 billion (SGD 12 billion). Such growth consolidates DBS’s stature as the leading foreign institution in areas such as loans, deposits, and other financial instruments.

The details of this acquisition were initially publicized in January 2022. The terms dictated that DBS would acquire Citi’s consumer banking assets in cash, complemented by a supplementary $705 million (SGD 956 million) as a premium. It is anticipated that this deal could result in a notable enhancement of Citi’s regulatory capital, potentially by around $1.2 billion.

DBS has welcomed almost 3,000 professionals from Citi Consumer Taiwan as part of the acquisition.

Reflecting on this milestone, DBS’s CEO, Piyush Gupta, conveyed: “With Citi’s esteemed segment under our banner, we have fast-tracked our consumer sector expansion in Taiwan. We foresee our market revenue doubling, possibly exceeding $960 million (SGD 1.3 billion). This transition primes us to deliver enriched offerings to our clientele, paving the way for innovative financial solutions.”

Citi’s New Trajectory

Citi’s decision to divest from its consumer banking operations is part of a broader initiative that spans 14 international markets, including regions in Asia, Europe, the Middle East, and Mexico.

Citi has successfully brokered deals in various markets, such as Australia, Bahrain, and India, to name a few. They also aim to conclude the divestment of their consumer banking arm in Indonesia within this year.

As Citi continues to evolve, it has highlighted its intent to wrap up its consumer banking operations in certain Asian territories while reevaluating its strategies in countries like Russia. For Mexico, Citi is pondering an initial public offering for its diverse banking services. They are also keen on reinitiating their withdrawal from the consumer banking segment in Poland by 2023, contingent on market dynamics.

Titi Cole, at the helm of Citi legacy franchises, commented on the recent developments, stating, “This strategic move underscores our commitment to a leaner, more streamlined operation, aligning with Citi’s future vision.”

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