Singapore-based DBS Group has struck a deal to buy Citigroup''s retail unit in Taiwan. The transaction comes nine months after Citi announced that it would be exiting Taiwan''s consumer banking market. According to DBS, it''s agreed to pay NT$45 billion and to retain all 3,500 staff from Citi''s Taiwan operations. The deal must be approved by the Financial Supervisory Commission.

Lim Him-chuan
DBS Taiwan general manager
We are very honored to have this opportunity, to be able to undertake Citi’s consumer business in Taiwan.

It’s been more than nine months since Citi said it was leaving Taiwan. A buyer was announced on Friday.

Lim Him-chuan
DBS Taiwan general manager
In the first two years of the pandemic, Citibank Taiwan’s consumer business posted an average annual net profit of more than NT$5 billion. With this acquisition, DBS Bank’s growth in Taiwan will be accelerated by at least 10 years.

At its press announcement, DBS said it was optimistic about Citi’s potential in the Taiwan market. Four other banks, including Taishin and Cathay United, were also in talks to purchase Citi. DBS said it stood out from the competition with its compatible culture and purchase offer.

Lim Him-chuan
DBS Taiwan general manager
First, I think that we offered a very reasonable price. The key point was the price. In addition many of our colleagues, both at our Singapore headquarters and in Taiwan, had previously held positions at Citi. So they are very familiar with Citi’s culture.

DBS will acquire Citi’s Taiwan retail unit via a transfer of assets and liabilities. The deal is set to go through by July of next year, and it’s been sent to the Financial Supervisory Commission for review. DBS said that all 3,500 employees of Taiwan’s retail unit will be retained.

Lim Him-chuan
DBS Taiwan general manager
We will fully retain the staff. We will hire all of them, that’s no problem.

DBS gave a guarantee on employment security. The deal is pending approval from the FSC, which will assess the buyer based on factors including potential labor disputes.