Acquisition Of Citigroup’s Consumer Banking Businesses in Indonesia, Malaysia, Thailand and VietnamAnalyst: Jonathan Koh, CFA       Tel: (65) 6590 6620

  • UOB has entered into agreements to acquire Citigroup’s consumer banking businesses comprising its unsecured and secured lending portfolios, wealth management and retail deposit businesses in Indonesia, Malaysia, Thailand and Vietnam.
  • Citigroup’s Consumer Business had an aggregate NAV of S$4.0b and a customer base of about 2.4m as at Jun 21, and generated income of S$0.5b in 1H21. Excluding one-off transaction costs, the acquisition is expected to be immediately accretive to UOB’s EPS and ROE. The total cash consideration for the acquisition is calculated based on an aggregate premium of S$915m plus the NAV of the Consumer Business as at completion. The acquisition is expected to be financed through excess capital and reduce UOB’s CET1 ratio by 70bp to 12.8%.
  • The acquisition strengthens and deepens UOB’s ASEAN franchise and is expected to double UOB’s existing retail customer base in the four markets.