Citigroup has reached an agreement to sell its Chinese onshore consumer wealth portfolio to HSBC Bank China.

The investment bank said the transaction will cover total deposits and investment assets under management of around $3.6 billion.

“This transaction serves the interest of our clients, colleagues and all parties involved,” said Christine Lam, Citi China country officer and president of Citibank China.

The move follows Citi’s announcement late last year that it was planning to wind down its consumer banking provision in China, which it said at the time was part of its broader global strategy refresh to exit consumer franchises in 14 markets in Asia, Europe, the Middle East, Africa and Mexico.

Titi Cole, Citi's head of legacy franchises, described the sale as an “excellent outcome” for its local consumer wealth colleagues and clients in China.

“We are taking important steps forward in exiting our consumer banking business in China and continue to make progress in our divestitures as part of our strategy to simplify Citi,” Cole said.

The sale of the consumer wealth portfolio comes after Citi’s recent announcement that it is set to make “significant changes” to how it operates as an organisation in order to meet commitments to its stakeholders.

Citi chief executive Jane Fraser said at the time that she was “determined” that Citi would deliver to its full potential and that the changes would ultimately “eliminate unnecessary complexity across the bank”.

Terms of the deal with HSBC, which is expected to close in the first half of 2024, were not disclosed.

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