CitigroupSingapore to buy consumer banking business in Indonesia Malaysia, Thailand, Vietnam, and Thailand. United Overseas BankThe banks made the announcement Friday.

UOB announced that it would acquire Citi’s portfolios of unsecured and secure lending, wealth management, and retail deposit units, which make up the consumer banking segment in all four markets.

UOB has an established presence in Southeast Asia and will pay Citigroup for net assets acquired by the businesses. Citigroup will also receive a premium payment of $690 millions.

UOB stated that Citi’s consumer businesses had an average net worth of around 4 billion Singapore Dollars ($2.97billion) and a customer base approximately 2.4million as of June 30, 2021.

The proposed transaction is expected to be financed through the bank’s excess capital and is estimated to reduce UOB’s common equity tier 1 ratio — which measures a bank’s capital in relation to its assets — by 70 basis points to 12.8%, UOB said. The bank stated that it does not expect to have a material impact on its CET1 ratio, and the regulation will allow for this.

UOB is a firm believer in Southeast Asia’s potential long-term, so Wee Ee Cheong was UOB’s deputy chairman and chief executive officers.

When the deal is finalized, approximately 5,000 Citi customer banking employees and support staff in four markets will transfer to UOB.

Wee explained that UOB Group’s acquired businesses and UOB’s local consumer franchise would make an impressive combination. This will allow us to grow our business and strengthen our position as the leading regional bank.

UOB shares surged by 1.23% after Friday’s announcement.

Citi indicated that the company expects to be able to release about $1.2Billion of its allocated tangible common capital and to increase its tangible common equity to over $200M. Tangible common equityThis is used to evaluate the ability of a financial institution to handle potential losses.

New York-based Bank will retain full control over its institutions in Indonesia, Malaysia and Thailand.

Jane Fraser, Citigroup CEO, said that last year the bank will exit retail operations in 13 countries outside the United StatesTo improve return. These markets include Australia, China and India, as well as Indonesia.

Citi CFO Mark Mason stated that the sale of four consumer markets and previously-announced transactions demonstrate Citi’s urgency to complete its strategic renewal in a Friday statement.

Citi anticipates that the transaction will close between 2022 and 2024 depending on regulatory approvals.

Citi announced last year that it had agreed to let its consumer banks businesses go in the Philippines AustraliaWas winding down consumer banking operations in South Korea.