DBS Group Holdings and Standard Chartered are among the lenders planning to bid for Citigroup consumer banking assets in Asia as the U.S. lender divests units across five markets in the region, according to people familiar with the matter.
Binding bids for Citigroup’s retail assets in Indonesia, the Philippines, Taiwan and Thailand are due Friday, while offers for the India unit are due next week, said the people, who asked not to be identified because the information is confidential.
The sales offer the buyers a chance to scale up high-end credit card and wealth businesses — whose appeal to banks lies primarily in their high fees rather than interest income — in regions that no longer fit in Citigroup’s refreshed strategy.
Under CEO Jane Fraser, the bank is
The Asia sales come as the bank reshapes its business around more profitable units like investment banking, and focuses its wealth business around hubs in Hong Kong, London, Singapore and the United Arab Emirates. Citigroup plans to raise $150 billion in new money and hire 2,300 staff in Asia for wealth management by 2025. Deliberations are ongoing and the prospective suitors could decide not to proceed with offers, the people said.
A spokesperson for Citigroup in Asia said “conversations with potential buyers continue with strong interest from a broad range of bidders.”
Singapore’s DBS plans to submit binding offers for both Indonesia and Taiwan, the people said. CEO Piyush Gupta said in August the bank’s capital levels were high enough to buy more assets without raising extra funds, and expressed interest in several Asian markets. A representative for DBS declined to comment.
Beyond valuation, Citigroup will evaluate the proposals in each market based on other issues such as antitrust, job protection and strategy, one of the people said.
Taiwan
Citigroup’s Taiwan consumer assets could fetch about $2 billion in a sale, the people said. DBS, Standard Chartered, Cathay Financial Holding and Fubon Financial Holding are set to lodge bids, the people said. The business could even raise close to $4 billion, depending on which assets are included, one of the people said.
Taiwan’s government will monitor and prevent Citigroup from transferring high-net-worth clients in Taiwan to its units in Hong Kong and Singapore, the island’s financial regulator said in April.
A representative for Standard Chartered declined to comment. Fubon and Cathay did not immediately respond to telephone calls and emails requesting comment.
Thailand
Bangkok Bank is planning to make an offer for Citigroup’s Thai assets, which could be valued at more than $2 billion, the people said. Bank of Ayudhya, owned by Japanese lender Mitsubishi UFJ Financial Group, is also weighing a bid, they said. A representative for Bangkok Bank declined to comment, while Bank of Ayudhya didn’t immediately respond to an email seeking comment.
India
Citigroup has set a bid deadline next week for its Indian consumer assets, which could be valued about $2 billion in a sale, the people said. Kotak Mahindra Bank Ltd., which is controlled by the world’s richest banker, Uday Kotak, is planning to bid for the assets, the people said. HDFC Bank and ICICI Bank are also weighing bids, they said. Representatives for Kotak Mahindra and HDFC Bank declined to comment. ICICI didn’t respond to emails seeking comment.
Indonesia and the Philippines
DBS is planning to bid for Indonesia, while its Singaporean rival United Overseas Bank Ltd. is considering making an offer, the people said. UOB CEO Wee Ee Chong said in May that the bank would look at the assets.
Malayan Banking is also weighing a bid for the Citigroup unit, the sale of which could value the business as much as $1 billion, they said. A representative for Maybank declined to comment. UOB didn’t immediately respond to requests for comment. BDO Unibank, Metropolitan Bank & Trust, Bank of the Philippine Islands and Union Bank of the Philippines are mulling offers for Citigroup’s Philippines assets, which could fetch as much as $1 billion in a sale, they said.
Union Bank President Edwin Bautista said in response to a Bloomberg News query that the assets will likely go to one of the country’s big three banks, and declined to comment further. Representatives for BPI and Metrobank declined to comment, while a representative for BDO Unibank couldn’t immediately comment.
