Citigroup Inc. could announce as early as next month a deal to sell its consumer-wealth business in China to HSBC Plc some two years after it announced plans to scale back its overseas retail banking business, according to reports on Thursday.
The deal would include a Citigroup
C,
unit that employs about 400 people and manages about $3 billion to $4 billion in assets for retail-wealth customers with about $100,000 to $1 million each.
Citigroup has been shedding its overseas consumer businesses including an upcoming initial public offering of Banamex in Mexico, while HSBC Holdings Plc
HSBC,
has aired plans to invest $3.5 billion by 2026 for its Asian wealth business.
HSBC has also recruited about 1,400 wealth managers in China through its Pinnacle unit.
Reuters initially reported the deal, which was also confirmed by unnamed sources who spoke to the Wall Street Journal.
For its part, Citi said earlier this month it will simplify its structure by eliminating its personal-banking and wealth-management layer, as well as its institutional-clients group.
It will also do away with regional layers in the Asia-Pacific region, Europe, the Middle East and Africa, and Latin America as it exits these businesses.
The bank named leaders of its five business main business units: Shahmir Khaliq, services; Andrew Morton, markets; Peter Babej, head of banking on an interim basis; Andy Sieg, wealth; and Gonzalo Luchetti, U.S. personal banking.
Also read: Citigroup readying $5B bond offering as first such deal in four years, source says
Citi said last month it has signed sales agreements for nine of the 14 retail banking markets it plans to exit, including Taiwan, Australia, India, the Philippines, Thailand and Vietnam. Citi is instead focusing on wealth management and commercial banking in its international business.
Citi will realize a regulatory capital benefit of $1.2 billion from closing the sale of its Taiwan consumer business to DBS Bank of Singapore, the bank said on Aug. 14.
Also read: Citi mulling further reorganization under CEO Jane Fraser: reports
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