Citi has completed the sale of its Vietnam retail banking and consumer credit card businesses to United Overseas Bank (UOB), including the transfer of 575 related staff.

The transaction is expected to result in a “modest regulatory capital benefit” to Citi, the New York City-based bank says in a statement.

In the deal, first announced in January 2022, UOB agreed to pay Citi cash consideration for the net assets of the acquired businesses, subject to customary closing adjustments, plus a premium of S$915 million (US$690 million].

At the time, Citi said the deal would result in the release of approximately US$1.2 billion of allocated tangible common equity, as well as an increase to tangible common equity of over US$200 million.

The deal with UOB was part of a broader sale agreement covering consumer banking across Malaysia, Thailand, Vietnam and Indonesia, excluding the bank’s institutional businesses. Sales in Malaysia and Thailand were completed on November 1 2022.

Since announcing its intentions to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh, Citi has signed sales agreements in nine markets and has now closed sales in six markets including Australia, Bahrain, Malaysia, the Philippines, and Thailand, in addition to Vietnam. 

Citi previously announced wind-downs of its consumer business in China and Korea, and the wind-down of its overall presence in Russia is in progress.

Citi Asia-Pacific chief executive officer Peter Babej says: “Today’s announcement is positive for our customers, our colleagues and our firm. Citi remains deeply committed to Vietnam, and we will invest further to support institutional clients locally and across our global network. We thank former employees and customers for their commitment and support, and wish them continued success.”

The firm had said its exit from consumer franchises in Asia-Pacific and EMEA was expected to release about US$7 billion of allocated tangible common equity over time.