SINGAPORE: DBS Group Holdings Ltd and Standard Chartered Plc are among the lenders planning to bid for Citigroup Inc consumer banking assets in Asia as the US lender divests units across five markets in the region, according to sources.

       Binding bids for Citigroup’s retail assets in Indonesia, the Philippines, Taiwan and Thailand are due today, while offers for the India unit are due next week, said the sources.

       The sales offer the buyers a chance to scale up high-end credit card and wealth businesses – whose appeal to banks lies primarily in their high fees rather than interest income – in regions that no longer fit in Citigroup’s refreshed strategy.

       Under chief executive officer (CEO) Jane Fraser, the bank is exiting 13 markets across Asia and Europe, the Middle East and Africa.

       Its Australia business was sold to National Australia Bank Ltd in August.

       The Asia sales come as the bank reshapes its business around more profitable units like investment banking, and focuses its wealth business around hubs in Hong Kong, London, Singapore and the United Arab Emirates.

       Citigroup plans to raise US$150bil (RM624bil) in new money and hire 2,300 employees in Asia for wealth management by 2025. In investment banking this year, Citigroup is the top-ranked foreign firm in the initial public offering league tables for Asia ex-Japan, and fifth for dealmaking, according to data compiled by Bloomberg.

       A spokesperson for Citigroup in Asia said “conversations with potential buyers continue with strong interest from a broad range of bidders.”

       Singapore’s DBS plans to submit binding offers for both Indonesia and Taiwan, sources said.

       CEO Piyush Gupta said in August the bank’s capital levels were high enough to buy more assets without raising extra funds, and expressed interest in several Asian markets.

       Malayan Banking Bhd is also weighing a bid for the Citigroup unit, the sale of which could value the business as much as US$1bil (RM4.16bil), sources said.

       A representative for Maybank declined to comment.

       Beyond valuation, Citigroup would evaluate the proposals in each market based on other issues such as antitrust, job protection and strategy, a source said.

       Citigroup’s Taiwan consumer assets could fetch about US$2bil (RM8.31bil) in a sale.

       DBS, Standard Chartered, Cathay Financial Holding Co and Fubon Financial Holding Co are set to lodge bids, the sources said.

       The business could even raise close to US$4bil (RM17bil), depending on which assets are included.

       Taiwan’s government will monitor and prevent Citigroup from transferring high-net worth clients in Taiwan to its units in Hong Kong and Singapore, the island’s financial regulator said in April.

       Bangkok Bank Pcl is planning to make an offer for Citigroup’s Thai assets, which could be valued at more than US$2bil (RM8.3bil).

       Bank of Ayudhya Pcl, owned by Japanese lender Mitsubishi UFJ Financial Group Inc, is also weighing a bid, sources said.

       A representative for Bangkok Bank declined to comment, while Bank of Ayudhya didn’t immediately respond to an email seeking comment. — Bloomberg