Liputan6.com, Jakarta UOB Indonesia has completed the acquisition of Citibank’s consumer banking business. President Director of UOB Indonesia, Hendra Gunawan, revealed that he believes the company’s ambition to become a leading bank in Indonesia and ASEAN is on the right track.
Currently, UOB’s business focuses on four ASEAN countries, namely Indonesia, Malaysia, Thailand and Vietnam.
“Our journey is not only focused on financial growth, but is also related to our commitment to help build ASEAN’s future,” said Hendra in a press conference at UOB Plaza, Jakarta on Wednesday (6/12/2023).
From this acquisition, UOB added around 5 thousand employees and 1 million new customers in Indonesia.
“We hope to be able to carry out more synergies to provide more value to customers,” explained Hendra.
On that occasion, Head of Strategic Communications and Brand UOB Indonesia. Maya Rizano also said that UOB has the ambition to focus on markets in ASEAN countries.
“The (ASEAN) market is very dynamic, and as we know, economic development in this region is increasing quite rapidly,” he said.
According to him, the four ASEAN countries, namely Indonesia, Thailand, Malaysia and Vietnam, in the future can encourage a more sustainable future for ASEAN.
“Also, with the strength of retail customers, the number of customers can reach almost eight million for ASEAN,” he said.
UOB Indonesia Adds 1 Million Customers and 1,000 Employees After Acquiring Citibank
Previously, UOB Indonesia officially acquired Citigroup’s consumer banking business. Following the acquisition, President Director of UOB Indonesia, Hendra Gunawan, revealed that his party received an additional workforce from Citi of 1,000 employees and 1 million new customers.
“From this acquisition we added 8 million customers in ASEAN, and more than 1 million in Indonesia,” said Hendra in a press conference at the UOB Indonesia Office, Jakarta on Wednesday (6/12/2023).
“In Indonesia (UOB) added around 1,000 employees from Citibank,” he explained.
On that occasion, Hendra also said that the acquisition reflects UOB’s long-term commitment to Indonesia and continues to improve services to its customers.
“We hope to be able to carry out more synergies to provide more value to customers,” he said.
UOB Indonesia in its statement revealed that it obtained additional capital through a rights issue of IDR 1.5 trillion after acquiring Citibank Indonesia’s consumer business.
This additional capital will enable UOB Indonesia to create greater value for customers and increase the strength of its balance sheet.
This additional capital is in line with the completion of the acquisition and full integration of the assets and liabilities of Citibank Indonesia’s consumer banking business into UOB Indonesia in November 2023.
UOB Indonesia Officially Acquires Citibank’s Consumer Business, Employees Also Move
Citi has officially completed the sale and migration of its consumer business in Indonesia to PT UOB Indonesia (UOBI). The businesses being sold are retail banking, credit cards and unsecured loans. In addition, Citi employees also moved to UOB.
Head of Legacy Franchises Citi Titi Cole said, the completion of Citibank’s latest divestment of all consumer franchises in Asia marks an important milestone in simplifying the company. This is proof of the commitment of Citi employees throughout the country and is clear evidence of Citi’s ability to implement strategy.
“We sincerely thank our former employees in Indonesia and wish them the best in their careers with UOB,” he explained in a written statement, Monday (20/11/2023).
Citi and UOB first announced this transaction in January 2022 as part of a broader sales agreement covering consumer banking in Malaysia, Thailand, Vietnam and Indonesia. Sales in Malaysia and Thailand were completed on November 1, 2022, and sales in Vietnam were completed on March 1, 2023.
The transaction is expected to provide Citi with modest capital gains. In total, the sale of the four consumer businesses to UOB has resulted in capital gains of approximately $1.1 billion.
This sale does not include Citi’s institutional banking business, and Citi remains focused on serving institutional clients in Indonesia, both locally, regionally and globally.
Source: Liputan6