Following the announcement in December 2021, Aboitiz-led Union Bank of the Philippines (UnionBank) has finally completed the takeover of Citigroup’s consumer banking business in the Philippines.

The transaction will be effected through an asset and liability transfer of the consumer banking activities of Citibank (Philippines), the sale of the shares in Citicorp Financial Services and Insurance Brokerage Philippines Inc., and and the 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 P26.71 billion.

UnionBank acquires Citi’s PH consumer banking business
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”With the acquisition of the Citi consumer business, we are now strong across three consumer businesses, namely: credit cards, salary / personal loans, and mortgage loans,” said Ana Delgado, chief customer experience officer and chief digital channel officer, UnionBank.

UnionBank is the seventh largest publicly listed bank in the Philippines. The takeover of the consumer portfolio puts the bank in the top 3 credit card issuers in terms of usage and spends.

“This will provide us with better margins and allow us to maintain our industry-leading ROE moving forward,” said Edwin Bautista, president and CEO of UnionBank. “Over 1,500 top talents from Citi, including its Senior Management Team, will 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.”