DBS, MUFG eyeing Citi's Asian consumer business
The potential bids show growing appetite for businesses like credit cards
Banks such as DBS, Mitsubishi UFJ Financial Group (MUFG), OCBC and Standard Chartered are set to bid for parts of Citigroup’s Asian consumer business, reports Reuters, based on information shared by various sources.
The sale process will start within a couple of weeks, the sources said.
The move by the banks comes after Citi announced it would exit from its consumer franchises in 13 markets, 10 of which are in Asia, as it refocuses more on institutional and wealth management businesses.
The potential bids highlight the lenders’ growing appetite for businesses like credit cards and mortgages in hopes of locking in long-term income growth.
As Citi is not giving up its banking licences in most of the markets it is exiting, the sale of the consumer banking portfolios and branches will only appeal to lenders with existing presence in these countries, the sources added.
Here's more from Reuters.