UnionBank completes acquisition of Citi’s retail banking business in PH

UnionBank.  citi

Manila, Philippines—UnionBank of the Philippines today announced the completion of its acquisition of Citi’s consumer banking business in the Philippines.

Ana A. Delgado, chief customer experience officer and chief digital channel officer, said, “This acquisition accelerates our goal of becoming the greatest consumer bank in the Philippines with one of the most diversified consumer banking portfolios among the listed banks today.”

The acquisition, Delgado said, further strengthened UnionBank’s three consumer businesses: credit cards, salary/personal loans and mortgage loans.

UnionBank president and chief executive officer Edwin R. Bautista said the acquisition was a game changer for the bank, its customers and employees.

“We are now a much larger consumer bank. We added a consumer portfolio that is well-run and very profitable,” Bautista said.

He said more than 1,500 top talents from Citi, including its senior management team, would be joining UnionBank.

“This further deepens our leadership bench. I am confident that, together, we will be able to bring the best customer experience and serve many more market segments and communities through innovation and collaboration,” he said.

The transaction will be effected through an asset and liability transfer of the consumer banking activities of Citibank, NA, Philippines Branch; sale of the shares in Citicorp Financial Services and Insurance Brokerage Philippines Inc., and sale of the real estate shares in Citibank Square building in Eastwood, Quezon City.

The total cash consideration is based on the net assets of the Citi Philippines consumer banking business plus a premium of P45.3 billion. Based on the closing statement as of June 30, 2022, the net asset value of the business was at P26.7 billion.

The completed sale of Citi’s consumer business in the Philippines is the second divestiture to date among the 14 consumer markets in Asia, Europe, Middle East and Mexico that Citi intends to exit as part of its “strategy refresh,” according to a Citi statement.

To date, it added, the bank has signed deals for the sale of nine of these markets, including the previously announced completion of Australia and is in the process of winding down consumer banking in South Korea.

In the same statement, Citi Philippines CEO Afab Ahmed said, “This transaction represents a positive outcome for our clients, colleagues and our firm. Citi Will continue to serve institutional clients in the Philippines and across our global network as we have for over 120 years.”

UnionBank is the 7th largest publicly-listed bank in the Philippines and is widely recognized as the leading digitally transformed and most innovative bank in the industry. With the Citi consumer portfolio, UnionBank will become part of the top three credit card issuers in terms of usage and spends.

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