CITIGROUP Inc. said yesterday that it had agreed to sell its China consumer wealth portfolio to HSBC Holdings Plc. as the U.S. bank continues to leave consumer banking across parts of Asia.

The portfolio, including clients, assets under management (AUM) and deposits, comprises about US$3.6 billion in assets and deposits from wealth customers across 11 major cities, HSBC said in a statement.

The deal is expected to close in the first half of 2024. Financial details of the transaction were not disclosed.

“This transaction serves the interest of our clients, colleagues and all parties involved,” Christine Lam, Citi China country officer and president of Citibank (China), said in a statement yesterday.

The transaction doesn’t include Citi’s institutional businesses in China, where it has a leading position, it said.

The U.S. investment bank announced it would wind down its consumer-banking operations in China last December, following a strategic shift since CEO Jane Fraser got the top job.

In April 2021, Citi told investors it would refocus its Asia strategy by pulling back from consumer banking and devoting resources to wealth management and corporate customers. Reuters first reported late last month that HSBC was set to acquire Citi’s China consumer wealth business, in a major boost to the London-based bank’s business in the world’s second-largest economy.

HSBC is pushing to become a leader in one of the world’s fastest growing wealth markets as part of its pivot to Asia strategy. (SD-Agencies)