Citi announced that it has completed the sale of its Philippines Consumer Business to UnionBank of the Philippines. The deal is expected to be worth approximately US$700 million.
The transaction covers Citi’s local credit card, unsecured lending, deposit and investment businesses, as well as Citicorp Financial Services and Insurance Brokerage Philippines Inc. (CFSI), which provides insurance and investment products and services to retail customers.
The agreement covers related Citi staff, with approximately 1,540 consumer bank and supporting employees transferring to UnionBank.
The completed sale of Citi’s Philippines consumer business is the second divestiture to date among the 14 consumer markets in Asia, Europe, Middle East and Mexico that the bank intends to exit as part of its strategy refresh.
To date, the bank has signed deals for the sale of nine of these markets, including the previously announced completion of Australia and is in the process of winding down consumer banking in South Korea.
Citi Philippines’ institutional business provides a range of services to over 950 multinational corporations as well as leading local corporates, including 90% of the top 20 companies by market capitalization on the Philippine Stock Exchange.
According to Citi, UnionBank was selected following an extensive and competitive auction process.
Titi Cole, CEO of Legacy Franchises at Citi said,
“The sale marks the second completed divestiture and underlines the progress we continue to make. UnionBank is the optimal owner for our local consumer business and we wish our former employees and customers continued success in the future.
We are very pleased with today’s announcement, and we will use the capital generated to invest in our strategic priorities.”
Aftab Ahmed, CEO of Citi Philippines said,
“This transaction represents a positive outcome for our clients, our colleagues and our firm.
Citi will continue to serve institutional clients in the Philippines and across our global network as we have for over 120 years.”
