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Citigroup (C) Divests Consumer Wealth Business to HSBC in China

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Citigroup Inc. (C - Free Report) has successfully completed the sale and migration of its onshore China-based consumer wealth portfolio to HSBC Holdings plc (HSBC - Free Report) China. More than 300 employees of Citigroup were transferred to HSBC as part of the deal.

This deal was first announced in October 2023. Going by October 2023 news, the transaction involved the transfer of total deposits and investment assets under management of around $3.6 billion. Per the previously signed agreement, Citigroup will transfer its remaining credit card portfolio in China to Fubon Bank in 2024.

Citigroup’s institutional businesses in China remain unaffected by this divestment. The bank continues to focus on serving institutional clients in China locally, regionally and globally.

This divestment is part of C’s broader strategy to exit consumer banking operations in 14 markets across Asia, Europe, the Middle East and Mexico. Citigroup has completed sales in nine of these markets, including Australia, Bahrain, India, Indonesia, Malaysia, the Philippines, Taiwan, Thailand, and Vietnam, to date. Furthermore, the bank is gradually winding down its consumer banking operations in Korea and its overall presence in Russia.     
Citigroup’s country officer and banking head for China, Luke Lu, stated, “Citi is intently focused on growing Citi’s institutional businesses in China, serving clients in the market through our network to support their cross-border needs.”

Head of Legacy Franchises at Citigroup, Titi Cole, mentioned, “We have made significant progress in executing Citi’s strategy, and completing this transaction is another important step forward in simplifying the firm.”

Citigroup's strategic exits from these markets will free up capital, which will allow it to align investments and resources to the businesses where it has the greatest scale and growth potential.

Over the past six months, shares of C have gained 27.8% compared with the industry’s growth of 21.7%.

  Zacks Investment Research
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Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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