Heaptalk, Jakarta — UOB Indonesia has completed the strategic acquisition of Citibank Indonesia’s consumer banking business and full integration of Citibank Indonesia’s assets and liabilities into UOB. The total takeover of Citi Indonesia’s consumer assets and liabilities reached US$68.2 million, around Rp1,061 trillion, completed on November 18, 2023.
Following the completion of integration in Malaysia and Thailand in November 2022 and Vietnam in March 2023, this step also marks the accomplishment of all UOB acquisitions of Citigroup’s consumer banking business in the four ASEAN countries. This effort also indicated UOB’s acquisition of Citigroup consumer banking, consisting of diverse unsecured and secured wealth management and retail deposits.
With the company’s strategic acquisition, UOB Indonesia’s President Director, Hendra Gunawan, stated that the UOB’s customers reached eight million spread in the ASEAN market, with more than 1 million customers coming from the archipelago. On the other hand, Hendra revealed the company’s employees have also augmented up to 1,000 workforces from Citibank after completing this acquisition, with additional employees up to 5,000 people for the ASEAN regional.
“This acquisition reflects our long-term commitment to Indonesia in providing the best customer service. Citigroup’s portfolio adds depth and breadth to its customer base, product range, solution offerings, and partner ecosystem,” added Hendra.
Besides completing the acquisition, this banking company also obtained additional capital through the right issue worth US$96.4 million, equal to Rp1.5 trillion, to create significant customer value and increase balance sheet strength. According to the company, this additional capital aims to perform retail business expansion, wholesale banking, and various acquisition programs after this acquisition.
Through this organic expansion, the scope of UOB’s retail spread in four countries is forecasted to be more extensive, supported by the company’s retail customer base in the ASEAN market, attaining around eight million. This move will accelerate the bank’s growth target in five years.
“This acquisition shows promising results and strengthens our position. With the support of our team and extensive ecosystem partnerships, we hope to bring a more diverse range of products to customers.” affirmed the Deputy Chairman and Chief Executive Officer of UOB, Wee Ee Cheong.
