MANILA - UnionBank of the Philippines on Monday said it has completed the acquisition of Citi's consumer banking business in the country.

The transaction covers Citi's local credit card, unsecured lending, deposit and investment business as well as Citicorp Services and Insurance Brokerage Philippines Inc as well as the 1,540 consumer bank and supporting employees who are transferring to UnionBank, Citi said in a separate statement.

With Citi's consumer portfolio, UnionBank will become one of the top 3 credit card issuers in terms of usage and spending, the bank said in a statement.

Aside from credit cards, the acquisition will also boost UnionBank's strength in personal loans and mortgage loans, UnionBank's Chief Customer Experience and Chief Digital Channel Officer Ana Delgado said.

The deal is a "game changer" for UnionBank, its customers and employees, UnionBank president and Chief Executive Officer Edwin Bautista said.

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

Meanwhile, Citi said the completion of the sale of its Philippine consumer business is the second divestiture among 14 consumer markets in Asia, Europe, the Middle East, and Mexico which it intends to exit.

"The transaction is expected to result in a capital benefit of approximately $700 million," Citi said.

"UnionBank is the optimal owner for our local customer business and we wish our former employees and customers continued success in the future," Citi's CEO of Legacy Franchises Titi Cole said.

Citi Philippines CEO Aftab Ahmed said Citi would continue to serve institutional clients in the Philippines.

• UnionBank acquires Citigroup’s Philippine consumer banking business
• BSP approves UnionBank acquisition of Citi consumer business in PH

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