Citigroup has announced that it will sell its consumer wealth portfolio in China to HSBC Bank China as part of its ongoing effort to reduce overseas assets and streamline its operations. The deal includes Citi’s clients, assets under management, and deposits, valued at approximately $3.6 billion.
The terms of the agreement were not disclosed, but the transaction is expected to close in the first half of the next year. Citigroup emphasised that it will continue its institutional businesses in China.
In April 2021, Citigroup had revealed its plans to exit consumer banking in China as part of its broader global strategy refresh. This move was part of CEO Jane Fraser’s strategy to simplify Citigroup and boost its profitability.
The sale of consumer wealth assets in China is in line with Citigroup’s efforts to reshape its operations and focus on core businesses while exiting non-core and less profitable segments. Despite this news, Citigroup’s shares have faced challenges in the market, having lost 11% of their value this year.
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