Metrobank and ANZ launched MCC in 2003 as a 60:40 joint venture respectively.
Metrobank will purchase 20 per cent of MCC for a consideration of $143.7 million (P7.4 billion) from ANZ, while the sale of the remaining 20 per cent will be completed by the third quarter of 2018 on the same terms, all for a total of over $287 million (P14.8 billion). ANZ had originally invested A$14 million ($11 million) in the JV.
“The sale makes sense for ANZ given our continued efforts to simplify our business and is also a good outcome for MCC and its card customers given the strength of the business. ANZ remains committed to its institutional business in the Philippines,” said ANZ Deputy CEO Graham Hodges in a statement issued on Wednesday.
ANZ has been selling its non-core assets in Asia to focus on institutional banking. In April, it announced the sale of its retail banking business in Vietnam to Shinhan Bank. Last year, it sold its retail and wealth businesses in Singapore, Hong Kong, China, Taiwan and Indonesia to DBS Group Holdings. This week, ANZ sold its pension unit to financial services company IOOF Holdings for A$975 million ($766 million).
Opportunity to expand MCC’s capabilities: Metrobank
Metrobank noted that MCC as a provider of credit cards in the Philippines has more than 1.5 million cards in force, based on data obtained from the Credit Card Association of the Philippines (CCAP).
In 2016, MCC reported total assets of P60.4 billion and a return on average equity of 36.3 per cent. It was also rated number one in terms of receivables as documented by CCAP.
Metrobank President Fabian S. Dee said the latest transaction opens a great opportunity to further expand the bank’s retail capabilities.
“We expect to leverage on better operational efficiencies as we eventually make MCC a wholly-owned subsidiary of Metrobank,” Dee said.
He added Metrobank expects that the historically strong performance of MCC can be sustained on the back of robust consumption spending.
As a premier universal bank, Metrobank has one of the largest Philippine networks with 959 branches, and over 2,200 automated teller machines (ATMs) nationwide, and 32 foreign branches, subsidiaries and representative offices.