Unionbank to acquire Citi’s consumer banking business in the Philippines – BusinessWorld Online
MANILA – Unionbank of the Philippines said on Thursday it will acquire the consumer banking business of Citigroup Inc. in the Southeast Asian nation, as part of a bid to boost growth in its retail banking sector.
Unionbank will pay cash for the net assets of the Citi Philippines’ consumer banking business plus a premium of P45.3 billion, or about $908 million, Citigroup said in a separate statement.
The deal includes Citi’s credit card, personal loans, wealth management, and retail deposit businesses, and real estate assets.
As of end-June, Citi’s consumer banking business in the Philippines had total assets of P89.5 billion, including gross loans of P59.7 billion, total liabilities of P71.7 billion that included deposits of P67.8 billion, and a customer base numbering nearly 1 million.
The acquisition, which is expected to close in the second half of 2022, will be funded by a combination of internal resources and a stock rights offering, Unionbank said.
“We look forward to this game-changing opportunity to leapfrog our credit card business and significantly expand our banking business in the higher end segment of the consumer market,” Unionbank President and CEO Edwin Bautista said in a statement. — Reuters
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
