CTBC Bank (中國信託銀行) president James Chen (陳佳文) yesterday confirmed that the bank had made a bid for Citibank Taiwan Ltd’s (花旗台灣) retail banking business, but it did not join the second round of bidding.
Chen did not reveal how much the bank bid for Citi’s business, only saying that it was “reasonable.”
“It would have been great if we had been able to purchase Citi’s business, but the investment would not have been economic if it costs us a big fortune,” Chen told reporters on the sidelines of an event in Taipei.
Photo: Lee Ching-hui, Taipei Times
The effect of acquiring Citi’s retail banking business would not have been as significant for CTBC as it would have been for other banks, “as we are already the leading player [in consumer banking], and our consumers overlap with those of Citi Bank Taiwan,” he said.
CTBC Bank would surely face more pressure if other banks acquired Citi’s retail banking, but CTBC does not fear the competition as the local consumer banking market has always been competitive, he said.
Asked whether Citi would sell its local unit with its Chinese unit, Chen said that Citi is still likely to sell the local unit separately, if the highest bidder is only interested in the local unit.
CTBC Bank was the first bank that verified its bid for Citi Bank Taiwan’s retail banking business. Other local financial companies that have reportedly filed bids, such as Fubon Financial Holding Co (富邦金控) and Cathay Financial Holding Co, have not commented on the reports.
Citibank Taiwan Ltd’s parent company, Citigroup Inc, in April announced that it would exit the retail banking business in 13 markets, including Taiwan.
The Financial Supervisory Commission has requested that the buyer have higher-than-average capital adequacy, sufficient capital and capability to take over Citi Bank Taiwan’s large-scale business and more than 500,000 clients.
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