Acquisition of Citi’s ASEAN units to boost revenue: UOB

Total UOB cardholders in the region jumped 60% as of end-2022.

UOB Group said its acquisition of Citigroup’s consumer banking units in ASEAN markets has boosted its retail banking business.

As of 31 March, UOB's acquisition of Citigroup's consumer banking operations in Malaysia, Thailand, and Vietnam has increased its regional retail customer base to more than seven million. 

The most recent acquisition in Vietnam has allowed the bank to serve around 200,000 customers in that country. Upon completing the acquisition in Indonesia by the end of 2023, these four markets are projected to contribute S$1b in additional revenue to the bank on an annual basis.

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“For the first quarter of 2023, Malaysia, Thailand, Indonesia and Vietnam accounted for more than 35% of the bank’s group personal financial services income. UOB’s network of branches in Malaysia, Thailand and Vietnam has also expanded by 15 as of March 2023,” UOB said

Since the acquisition, UOB is boosting its ASEAN presence through the consumer card space for Visa and consumer credit cards for Mastercard portfolios in terms of billings, UOB stated.

As of end-2022, UOB cardholders in the region hiked 60%.

“Total regionwide credit card billings also grew more than 90 per cent in the fourth quarter of 2022 as compared to a year ago, with the figure close to double pre-COVID levels in 2019.” UOB added.