Unionbank to buy Citi’s Philippine consumer banking biz

REUTERS/Robert Galbraith

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.

Reuters

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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.