UnionBank of the Philippines announced today that it has entered into a Share and Business Transfer Agreement with various subsidiaries of Citigroup Inc. (Citi) to acquire Citi’s consumer banking business in the Philippines.
The transaction includes Citi’s credit card, personal loans, wealth management, and retail deposit businesses. The acquisition also includes 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.
Erramon Isidro M. Aboitiz, Chairman of UnionBank, said, “This acquisition further cements our position as a leading bank in the Philippines, as well as fast-tracks our growth aspirations in the retail banking segment.”
Edwin R. Bautista, President and Chief Executive Officer of UnionBank, highlighted that “Citibank Philippines has a great, profitable and well-run retail portfolio. It has the 3rd largest credit card franchise and is a pre-eminent wealth management provider in the Philippines. 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.”
Mr. Bautista added, “There are clear synergistic opportunities in this engagement. We intend to learn from Citi’s expertise to enable UnionBank to effectively build on its success and take the business to the next level. As we embark on this journey, we are committed to retaining all of Citi’s key talents and upholding the superior customer experience that Citi has delivered to its customers over the years.”
Approximately 1,750 Citi employees, including senior management, are expected to join UnionBank. Mr. Aboitiz added, “We are looking forward to welcoming all employees to the UnionBank family. With the strong cultural similarities between the organizations, we believe Citi’s employees will feel at home at UnionBank.”
UnionBank is the 7th largest publicly-listed bank in the Philippines and is widely recognized to be the leading digitally transformed and most innovative bank in the industry.