,Philippines
UnionBank Plaza in Pasig, Philippines. (Photo courtesy of Moon Rivers, Wikimedia Commons)

UnionBank to buy Citi’s Philippine consumer banking franchise for $908m

Around 1,750 Citi employees are expected to transfer to UnionBank.

UnionBank of the Philippines is acquiring Citi’s consumer banking franchise in the country for approximately $908m (PHP45.3b), according to a press announcement.

Subject to the timing of regulatory approvals, completion is expected in the second half of 2022. 

The agreement covers Citi’s local credit card, unsecured lending, deposit, and investment businesses.

It also covers all Citi staff, with around 1,750 employees expected to transfer to UnionBank upon the close of the transaction.

In addition, the transaction also covers the acquisition of Citicorp Financial Services and Insurance Brokerage Philippines Inc., which provides insurance and investment products and services to retail customers.

Upon closing, Citi said that this transaction would result in the release of approximately $300m of allocated tangible common equity, as well as an increase to tangible common equity of approximately $500m. 

Citi said that UnionBank was selected following “an extensive and competitive auction process.”

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