UnionBank acquires Citi’s retail banking operations in the Philippines
The deal, first announced in December 2021, covers Citi’s credit card, unsecured lending and investment operations in the Philippines and is valued at PHP45.3 billion ($817.12 million ).
UnionBank said the deal strengthens its position in consumer businesses, including credit cards, payroll/personal loans and mortgages.
The acquisition will make UnionBank one of the top three credit card issuers by usage and spend, the bank noted.
The agreement provides for a transfer of assets and liabilities of the retail banking business of Citibank, Philippines Branch, the sale of the shares of Citicorp Financial Services and Insurance Brokerage Philippines, and the sale of the real estate shares of the Citibank building Square in Eastwood, Quezon City.
UnionBank Chairman and CEO Edwin Bautista said: “We are now a much bigger consumer bank. We have added a well managed and highly profitable consumer portfolio. This will provide us with better margins and allow us to maintain our industry-leading ROE in the future.
“More than 1,500 of Citi’s top talent, including its leadership team, will join UnionBank. This further deepens our leadership bench. I am confident that together we will be able to deliver the best customer experience and serve many other market segments and communities through innovation and collaboration.
For Citi, the deal is expected to generate a capital benefit of approximately $700 million.
Aftab Ahmed, CEO of Citi Philippines said“This transaction represents a positive outcome for our clients, our colleagues and our firm. Citi will continue to serve institutional clients in the Philippines and across our global network as we have for more than 120 years. »