The Business Times
business-time-50

Citi acquisition to raise proportion of higher-margin unsecured lending in UOB’s consumer business

google-preferred-sourceAdd BT as a preferred source
Tan Nai Lun

Tan Nai Lun

Published Wed, May 10, 2023 · 11:59 PM
    • UOB’s newly acquired Citi consumer portfolio will likely double contributions from the bank’s unsecured lending business by the end of 2023, and grow income contributions to about 27 per cent to 30 per cent.
    • UOB’s newly acquired Citi consumer portfolio will likely double contributions from the bank’s unsecured lending business by the end of 2023, and grow income contributions to about 27 per cent to 30 per cent. PHOTO: BT FILE

    UOB’S consumer business could enjoy a lift in margins with the addition of the consumer portfolio acquired from Citi, which is skewed towards unsecured lending and credit cards, said a senior executive at the bank.

    The newly acquired Citi consumer portfolio will likely double contributions from the unsecured lending business by the end of 2023, and grow income contributions to about 27 per cent to 30 per cent, said Jacquelyn Tan, UOB’s head of group personal financial services.

    Unsecured lending is a “high net interest margin, high return on equity type of business”, she added.

    UOBCitiM&ACredit/Debit cardsBanksSpotlight

    TRENDING NOW

    Handled passively, satellite connectivity becomes a service that the telco distributes, while somebody else sets the economics.

    When every phone becomes a satellite phone, what happens to Asia’s telcos?

    The deal for the sale of Scotts Square mall, just off Orchard Road, is said to be in the early stages of being worked out, at a price of about S$320 million.

    Father-and-son duo Raj Kumar and Kishin in exclusive due diligence to buy Scotts Square

    Under the Philippines’ new policy, up to four EV models will be provided with as much as 15 billion pesos each in fiscal support, in the form of tax payment certificates.

    Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry

    For the roughly 80% of South-east Asian conglomerates that are family-controlled, staging capital against tested validation is critical to survival.

    The factors that make South-east Asia’s top conglomerates stand out

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More