Standard Chartered, DBS Gunning After Citi Asia Retail Units

Standard Chartered Plc and DBS Group Holdings Ltd. are among the lenders planning to bid for Citigroup Inc. consumer banking assets in Asia as the US lender divests units across five markets in the region, according to people familiar with the matter, Manuel Baigorri, Chanyaporn Chanjaroen, and Samson Ellis reported for Bloomberg News.

Photo Insert: Standard Chartered Bank

Binding bids for Citigroup’s retail assets in Indonesia, the Philippines, Taiwan, and Thailand are due Friday, while offers for the India unit are due next week, said the people, who asked not to be identified because the information is confidential.

The sales offer the buyers a chance to scale up high-end credit card and wealth businesses — whose appeal to banks lies primarily in their high fees rather than interest income — in regions that no longer fit in Citigroup’s refreshed strategy.

Under Chief Executive Officer Jane Fraser, the bank is exiting 13 markets across Asia and Europe, the Middle East, and Africa. Its Australia business was sold to National Australia Bank Ltd. in August.

The Asia sales come as the bank reshapes its business around more profitable units like investment banking, and focuses its wealth business around hubs in Hong Kong, London, Singapore, and the United Arab Emirates. Citigroup plans to raise $150 billion in new money and hire 2,300 staff in Asia for wealth management by 2025

In investment banking this year, Citigroup is the top-ranked foreign firm in the initial public offering league tables for Asia ex-Japan, and fifth for dealmaking, according to data compiled by Bloomberg.

Deliberations are ongoing and the prospective suitors could decide not to proceed with offers, the people said. A spokesperson for Citigroup in Asia said “conversations with potential buyers continue with strong interest from a broad range of bidders.”

Singapore’s DBS plans to submit binding offers for both Indonesia and Taiwan, the people said. CEO Piyush Gupta said in August the bank’s capital levels were high enough to buy more assets without raising extra funds and expressed interest in several Asian markets. A representative for DBS declined to comment.

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