SINGAPORE: DBS Group, Southeast Asia's largest bank, has agreed to buy Citigroup's consumer banking business in Taiwan via a transfer of assets and liabilities and take over the 3,500 staff in the retail arm.
The acquisition will help accelerate DBS Taiwan's growth by at least 10 years, making it Taiwan's largest foreign bank by assets, the lender said.
According to Piyush Gupta, CEO of DBS Group, "We believe that Asia's long-term growth trends are intact, despite COVID 19".
Citi Consumer Taiwan is a highly attractive, high-returns business that is expected to contribute at least S $250 million annually in net profit to DBS after COVID 19 recovery. Post-transaction, DBS Taiwan will be propelled to the top ranks of Taiwan's banking sector, he added.
The target completion date is expected to be in the middle of 2023, subject to regulatory approvals and migration.