DBS buys Citi's Taiwan retail unit to bulk up regional presence

DBS buys Citi's Taiwan retail unit to bulk up regional presence

Dbs, Citi

28/1/2022 12:01:00 PM

DBS buys Citi 's Taiwan retail unit to bulk up regional presence

SINGAPORE — DBS Group has agreed to pay S$956 million for Citi group's consumer business in Taiwan, making the Singapore lender the largest foreign bank in Taiwan by assets as it shores up regional acquisitions to power growth.

The Taiwan transaction will help DBS better compete with bigger local rivals including CTBC Financial Holding and Cathay Financial Holding in the rapidly-growing market.The transaction comes after Citi said it would exit retail operations in 10 markets in Asia as it refocuses on its more lucrative institutional and wealth management businesses. Citi is retaining its institutional business in Taiwan.

"Citi Consumer Taiwan is a highly attractive, high-returns business that is expected to contribute at least S$250 million annually in net profit to DBS after the Covid-19 recovery," Mr Gupta told a news conference on Friday (Jan 28).The performance of Citi's unit weakened in the past two years mainly because of a sharp drop in interest rates that impacted the sector.

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DBS to buy Citi's Taiwan retail business, take over 3,500 staffSINGAPORE : DBS Group has agreed to buy Citi group's consumer business in Taiwan in a move that will see the Singapore-based bank pay S$956 million ($706.6 million) above the net asset value, making it Taiwan's largest foreign bank by assets. DBS , Southeast Asia's biggest lender, said in a statement on Friday th

DBS to buy Citi's consumer banking business in TaiwanSINGAPORE: DBS Group, Southeast Asia\u0027s largest bank, has agreed to buy Citi group\u0027s consumer banking business in Taiwan via a transfer of assets and liabilities and will take over the 3,500 staff employed in the retail arm. It will pay cash for the net assets of Citi bank\u0027s Taiwan consumer banking business p

DBS to announce purchase of Citi's Taiwan consumer business -sourcesTAIPEI (Reuters) -Singapore's DBS Group will announce on Friday it is to buy Citi group's consumer finance business in Taiwan, two sources familiar with the matter told Reuters on Thursday. DBS and Citi declined to comment. The Wall Street Journal reported this month that the sale could be valued at up to $2.2 billion. Being cancer-stricken and begging CPF Board to repay overdue debt; that which in any case cannot be done as the money had been commingled and funneled to private entity Temasek Holdings for Ho Ching to wager on unviable, untenable and ultimately, invariably doomed gambles

DBS to announce purchase of Citi's Taiwan consumer business -sourcesTAIPEI :Singapore's DBS Group will announce on Friday it is to buy Citi group's consumer finance business in Taiwan, two sources familiar with the matter told Reuters on Thursday. DBS and Citi declined to comment.The sources, who spoke on condition of anonymity as they were not authorised to speak to the

DBS to buy Citi's Taiwan retail business, take over 3,500 staffSINGAPORE — DBS Group has agreed to buy Citi group\u0027s consumer business in Taiwan in a move that will see the Singapore-based bank pay S$956 million above the net asset value, making it Taiwan\u0027s largest foreign bank by assets. DBS , Southeast Asia\u0027s biggest lender, said in a statement on Friday (Jan 28) tha

DBS agrees to buy Citi's Taiwan retail business, take over 3,500 staffSINGAPORE : DBS Group has agreed to buy Citi group's consumer business in Taiwan, paying S$956 million ($706.6 million) above the net asset value, making the Singapore lender the largest foreign bank in Taiwan by assets.The deal is part of DBS Chief Executive Piyush Gupta's strategy of expanding Southeast Asia'

The deal is part of DBS Chief Executive Piyush Gupta's strategy of expanding Southeast Asia's largest bank in overseas markets, having bought an US$814 million (S$1.1 billion) minority stake in a privately owned Chinese bank last year as well as distressed lender Lakshmi Vilas Bank in India. The Taiwan transaction will help DBS better compete with bigger local rivals including CTBC Financial Holding and Cathay Financial Holding in the rapidly-growing market. The transaction comes after Citi said it would exit retail operations in 10 markets in Asia as it refocuses on its more lucrative institutional and wealth management businesses. Citi is retaining its institutional business in Taiwan. "Citi Consumer Taiwan is a highly attractive, high-returns business that is expected to contribute at least S$250 million annually in net profit to DBS after the Covid-19 recovery," Mr Gupta told a news conference on Friday (Jan 28). The performance of Citi's unit weakened in the past two years mainly because of a sharp drop in interest rates that impacted the sector. "Frankly, given the outlook on rates that we have today, this is something that's going to come roaring right back. I wouldn't be surprised if this turns around even in the course of this calendar year," Mr Gupta said. DBS, which makes the majority of its profit from Singapore, will take on about 3,500 staff from Citi's Taiwanese business which has 2.7 million credit cards, 500,000 deposit and wealth customers and 45 branches. ACCELERATE GROWTH Mr Gupta said the deal will accelerate DBS Taiwan's growth by more than 10 years in a market that is attractive for its wealth and technology sectors. DBS will pay a premium of S$956 million for Citi's net assets and this will be adjusted when the deal is expected to close in mid-2023. DBS will also inject S$1.2 billion as capital. Since Citi's Taiwan business had gross loans of S$11.3 billion and total deposits of S$15.1 billion, DBS is effectively not paying anything based for the net assets. DBS said the acquisition, funded by its excess capital, will have no impact on its ability to pay dividends. DBS, which has a market value of nearly S$92 billion, reported a net profit of S$1.7 billion for the July to September quarter. Citing sources, Reuters had reported late on Thursday that DBS would announce the purchase on Friday. Morgan Stanley is DBS's financial adviser on the transaction. Mr Peter Babej, Citi's Asia Pacific CEO, said the transaction will enable Citi to make additional investments in strategic areas, including its institutional businesses in Taiwan, which remains a priority market for the firm. Earlier this month, Citi sold its consumer business in four Southeast Asian markets to Singapore's United Overseas Bank for about S$5 billion. REUTERS Related topics