Citigroup on Thursday said it would sell its consumer banking franchise in the Philippines to a domestic bank as the US lender continues its exit from the Asian retail business.
UnionBank of the Philippines will pay about 55 billion pesos ($1.1 billion) for Citi’s local credit card, unsecured lending, deposit and investment businesses, as well as Citicorp Financial Services and Insurance Brokerage Philippines.
About 1,750 consumer bank and supporting employees are expected to transfer to UnionBank once the transaction is done.
Citi’s exit from its consumer franchises in 13 markets, mostly in Asia and the Middle East, is expected to raise about $7 billion.
“Citi will continue to serve institutional clients in the Philippines and across Asia-Pacific as we have for over a century,” Citi Asia Pacific CEO Peter Babej said.
Citi Philippines corporate banking serves about 950 multinational corporations as well as local companies, including 90% of the top 20 companies by market capitalisation on the Philippine Stock Exchange.
Subject to the timing of regulatory approvals, the deal’s completion is expected in the second half of 2022. Linklaters and SyCip Salazar Hernandez & Gatmaitan acted as Citi’s international and domestic legal advisers.
- George Russell