Manila, Philippines — UnionBank, the seventh-largest publicly-listed bank in the Philippines, has announced that it will now be acquiring Citigroup’s (Citi) consumer banking business in the country.
In April this year, Citi shut down its consumer business in the country, including 12 other markets such as Australia, China, India, and Indonesia to move the focus to its Institutional Clients Group. For the acquisition, UnionBank said it has entered into a ‘share and business transfer agreement’ with various subsidiaries of Citi.
UnionBank’s transactions will now include 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 offices.
Erramon Isidro Aboitiz, UnionBank’s chairman, said that the acquisition further cements its position as a leading bank in the Philippines, and will help fast-track its growth aspirations in the retail banking segment.
Meanwhile, Edwin Bautista, UnionBank’s president and chief executive officer, commented that they look forward to leapfrogging their credit card business and significantly expanding their banking business in the higher-end segment of the consumer market.
“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,” said Bautista.
UnionBank said that Citi will continue to operate its consumer banking business in the Philippines until the completion of the acquisition, which is expected to close in the second half of 2022. Moreover, approximately 1,750 Citi employees, including senior management, are expected to join UnionBank next year.