Philippines: ANZ exits investment in Metrobank JV for $287m

A man walks past a branch of the Australia and New Zealand Banking Group Ltd (ANZ) in Sydney October 29, 2013. REUTERS/David Gray/File Photo

ANZ is selling its entire 40 per cent stake in Metrobank Card Corp (MCC), a credit card provider in the Philippines, to its joint venture partner, Metropolitan Bank & Trust Company (Metrobank).

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.

Also Read:

Australia: ANZ Bank sells pension biz to IOOF for $766m

Philippines: GT Capital invests $483m in Metrobank, ups stake by 9.6%

Philippines: MPIC, GT Capital seal series of investment deals worth $940m

BDO closes largest equity capital raise in Philippines at $1.2b

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.