KUALA LUMPUR (Nov 1): United Overseas Bank Ltd (UOB) has completed the acquisition of Citigroup’s consumer banking businesses in Malaysia and Thailand.

In a statement on Tuesday (Nov 1), the banking group said that on the other hand, completion of the acquisition of Citigroup’s consumer banking businesses in Indonesia and Vietnam is planned for 2023.

The consumer banking businesses comprise Citigroup’s unsecured and secured lending portfolios, wealth management and retail deposit businesses.

UOB said the acquisition is part of its strategy to scale up its Asean retail business outside of its home market of Singapore.

Once completed, the acquisition is expected to double UOB’s existing retail customer base in the four markets to 5.3 million customers, and add 5,000 people to its team.

UOB deputy chairman and chief executive officer Wee Ee Cheong said the completion of the acquisition in Malaysia and Thailand is an important milestone, as the group continues to invest in its regional franchise.

Wee said UOB is committed to ensuring a seamless migration experience for Citigroup’s customers.

“Our expanded touchpoints and partner network also enable us to provide a wider range of products, services and benefits to our enlarged customer base,” he said.

In a separate statement, Citigroup said the transaction is expected to result in a regulatory capital benefit of approximately US$1 billion (RM4.73 billion) for the banking group.

Citi Malaysia CEO Usman Ahmed said the country remains a key market, as the group focuses on growing its institutional client franchise, as well as the Citi Solutions Centers in Kuala Lumpur and Penang, from where the bank services over 50 countries around the world.