DBS buys Citi’s Taiwan retail business and takes on 3,500 employees

FILE PHOTO: A view of the exterior of the Citibank headquarters in New York, New York, U.S., May 20, 2015. REUTERS/Mike Segar/File Photo/File Photo

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SINGAPORE, Jan 28 (Reuters) – DBS Group (DBSM.SI) has agreed to buy Citigroup’s (CN) consumer business in Taiwan in a move that will see the Singapore-based bank pay 956 million Singapore dollars ($706.6 million) above net asset value, making it Taiwan’s largest foreign bank by assets.

DBS, Southeast Asia’s biggest lender, said in a statement Friday that it would take over 3,500 employees at Citi’s Taiwanese business which has 2.7 million credit cards, 500,000 deposit customers and fortune and 45 branches.

“Citi Consumer Taiwan is a very attractive and high-yield business that is expected to bring at least S$250 million in net profit to DBS after the Covid-19 recovery,” DBS CEO Piyush Gupta said in a statement. .

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The transaction comes after Citi announced last year that it would exit its retail operations in 10 markets in Asia as it refocuses on its more lucrative institutional and wealth management businesses. Read more

DBS said it would pay cash for the net assets of Citi’s consumer business in Taiwan, plus a bonus of S$956 million.

Citing sources, Reuters had reported Thursday evening that DBS would announce the purchase on Friday.

Earlier this month, Citi reached an agreement to sell its consumer business in four Southeast Asian markets to United Overseas Bank (UOBH.SI) for around S$5 billion. Read more

($1 = 1.3529 Singapore dollars)

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Reporting by Anshuman Daga and Indranil Sarkar; Editing by Sherry Jacob-Phillips

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