Unionbank of the Philippines said on Thursday it will acquire the consumer banking business of Citigroup Inc in the Southeast Asian nation, as part of a bid to boost growth in its retail banking sector.
Unionbank will pay cash for the net assets of the Citi Philippines’ consumer banking business plus a premium of 45.3 billion pesos, or about $908 million, Citigroup said in a separate statement.
The deal includes Citi’s credit card, personal loans, wealth management, and retail deposit businesses, and real estate assets.
As of end-June, Citi’s consumer banking business in the Philippines had total assets of 89.5 billion pesos, including gross loans of 59.7 billion pesos, total liabilities of 71.7 billion pesos that included deposits of 67.8 billion pesos, and a customer base numbering nearly 1 million.
The acquisition, which is expected to close in the second half of 2022, will be funded by a combination of internal resources and a stock rights offering, Unionbank said.
“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,” Unionbank President and CEO Edwin Bautista said in a statement.