Citi Planning to Sell China Retail-Wealth Unit to HSBC, Source Says
28 Setembro 2023 - 1:47AM
Dow Jones News
By Elaine Yu and Matthew Thomas
Citigroup is in talks to sell its retail-wealth business in
China to British rival HSBC, according to a person familiar with
the matter.
The deal, which is likely to be announced next month, is part of
Citi's broader exit from consumer banking outside of its home
market. The U.S. bank had announced that it was scaling back at
overseas retail banking business in 2021, and said last year that
it would wind down the consumer-banking business in China.
The retail-wealth segment in China includes customers with
assets between $100,000 and $1 million. Citi's China retail wealth
deposits and assets under management are currently between $3
billion and $4 billion, and the sale will affect about 400
employees in China, who are expected to transfer to HSBC, said the
person.
HSBC declined to comment on the potential deal.
HSBC, Hong Kong's biggest lender, had pledged to spend more than
$3.5 billion two years ago to build its Asian wealth business over
the next five years. The bank has since gone on a hiring spree,
including the recruitment of 1,400 wealth managers in mainland
China to sell insurance and advise on investments through its
branchless venture in the country known as Pinnacle.
Citi had earlier this month said that it will simplify its
international structure, removing some regional jobs, as Chief
Executive Jane Fraser shakes up its executive ranks and sheds
overlapping roles.
Write to Elaine Yu at elaine.yu@wsj.com
(END) Dow Jones Newswires
September 28, 2023 00:32 ET (04:32 GMT)
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