UnionBank says Citi consumer business acquisition to boost loan portfolio

ABS-CBN News

Posted at Dec 24 2021 12:09 PM

MANILA— UnionBank said Friday its announced acquisition of Citi's local consumer business could boost its loan portfolio.

On Thursday, the Aboitiz-led bank announced it would buy the consumer banking arm of Citigroup in the Philippines. 

Citi said it would exit in 13 markets including the country.

The deal will "increase consumer loan portfolio for higher net interest margins," UnionBank said in a disclosure to the stock exchange.

The acquisition will also expand the bank's banking business in the consumer market, it added.

UnionBank said the transaction includes Citi's credit card, personal loans, wealth management and retail deposit businesses as well as Citi's real estate interests in relation to Citibank Square in Eastwood, 3 full-service bank branches, 5 wealth centers and 2 bank branch lites.

The bank said it would pay a cash consideration for the net assets of the Citi Philippines consumer business and a premium of P45.3 billion. 

Regulatory approvals from the Bangko Sentral ng Pilipinas, Philippine Competition Commission, Philippine Deposit Insurance Corp, Securities and Exchange Commission and Insurance Commission are needed for the deal, it said.

Around 1,750 Citi employees, including senior management, are expected to join UnionBank, an official earlier said. 

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