HSBC Completes Acquisition of Citi’s Retail Wealth Portfolio

HSBC Bank has completed its acquisition of Citi’s retail wealth management portfolio in mainland China as part of its strategy to strengthen and expand operations in Asia.

Citi’s consumer wealth portfolio, consisting of investment assets and deposits worth USD $3.6 billion, has now been integrated into HSBC Bank China’s wealth and personal banking operations.

As part of the sale, HSBC also acquired Citi’s associated customers in 11 major cities in mainland China and over 300 employees from Citi have been transferred to the bank.

Citi’s institutional businesses in China have been excluded from the sale, so Citi will continue to serve institutional clients in China locally, regionally and globally.

HSBC will also not acquire Citi’s credit card portfolio, which will be transferred to Fubon Bank China later this year as part of a previously signed agreement.

HSBC and Citi first announced the transaction in October 2023.

The acquisition aims to strengthen HSBC’s wealth capabilities in Asia as well as scale up and deepen coverage of its mainland China wealth customers, with a particular focus on the affluent sectors.

The bank has previously pursued a combination of organic and inorganic initiatives to achieve this aim, such as launching global private banking across six cities in mainland China. 

Nuno Matos, chief executive officer of wealth and personal banking at HSBC, said: “HSBC’s ambition is to be the leading international wealth manager for mass affluent and high-net-worth (“HNW”) individuals in mainland China.”

The acquisition also supports Citi’s plan to exit consumer banking operations in 14 markets across Asia, Europe, the Middle East and Mexico as part of its strategic refresh.

Titi Cole, head of legacy franchises at Citi, said: “We have made significant progress in executing Citi’s strategy, and completing this transaction is another important step forward in simplifying the firm.”