UnionBank takes over Citi consumer banking business on August 1

MANILA, Philippines — Aboitiz-led Union Bank of the Philippines is taking over the consumer banking business of American banking giant Citi after getting the go signal from the Bangko Sentral ng Pilipinas (BSP).

In a letter to customers, UnionBank president and CEO Edwin Bautista said that full integration is seen by the middle of next year as both UnionBank and Citi continue to work together to ensure a smooth and seamless transition.

“I am pleased to update you that both UnionBank and Citi have now obtained the necessary regulatory approvals for the full turnover of Citi Philippines’ consumer business to UnionBank effective Aug.1, 2022,” Bautista said.

Bautista said the official completion of the acquisition is definitely something to look forward to for both UnionBank and Citi customers.

“We have lined-up many exciting promotions and activities to show our gratitude for your support and to welcome the new customers joining our growing UnionBank family,” Bautista said.

According to Bautista, the Aboitiz-led bank is committed to continue delivering superior customer experience to both UnionBank customers, as well as incoming Citi clients during the integration period.

The acquisition of Citi’s consumer banking business in the Philippines brought with it close to one million in high-end customers.

Last Wednesday, the listed bank informed the Philippine Stock Exchange (PSE) that the BSP has issued a notice dated July 18, 2022 approving the acquisition by UnionBank of Citigroup’s consumer business in the Philippines.

As stated in the notice from the regulator, the acquisition is composed of selected consumer assets and liabilities, real estate properties and interests of Citi Square Building Corp., as well as 100 percent of the capital stock in Citicorp Financial Services and Insurance Brokerage Philippines Inc.

The takeover by the Aboitiz-led bank covers the consumer banking business of Citibank Philippines, which includes its credit card, retail deposit, personal and unsecured loans, and asset management portfolio.

“This game-changing move cements our position as a leading digitally-transformed bank in the Philippines and fast tracks our vision of becoming a Great Retail Bank,” Bautista said.

UnionBank emerged as the dark horse in the bidding of the retail banking segment of Citi in the Philippines last year after edging the country’s largest leading lenders, including Sy-led BDO Unibank. It offered P55 billion to bag the deal.

It raised P40 billion via a stock rights offering (SRO), wherein existing shareholders led by Aboitiz Equity Ventures, Insular Life Assurance Co. Ltd., and pension fund manager Social Security System infused fresh equity to partially fund the acquisition of Citi’s consumer business in the Philippines.