Economy · August 3, 2022

Citi sells consumer business to UnionBank

Citi has formally divested its Philippine consumer banking business to Union Bank of the Philippines (UnionBank), marking another step in the American banking giant’s move to abandon retail banking in several markets around the world.

UnionBank announced last week that regulators had approved the sale, which covered Citi’s local credit card, unsecured lending, deposit and investment businesses, as well as Citicorp Financial Services and Insurance Brokerage Philippines Inc. About 1,540 banks consumer and support employees will be transferred to UnionBank.

The completed sale is the second divestiture to date among 14 consumer markets in Asia, Europe, the Middle East and Mexico that Citi intends to exit as part of its upgrade strategy, the bank said in a statement.

Citi has signed agreements to sell nine of these markets, including the previously announced completion of Australia, and is shutting down the consumer banking sector in South Korea.

The transaction is expected to result in a capital gain of approximately $ 700 million, the company said.

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“The sale marks the second completed sale and underlines the progress we continue to make,” said Titi Cole, CEO of Citigroup’s Legacy Franchises. “UnionBank is the optimal owner for our local consumer business and we wish our former employees and customers continued success in the future.”

Citi will continue to maintain a corporate banking presence in the country and Aftab Ahmed, CEO of Citi Philippines said, “This transaction represents a positive result for our clients, our colleagues and our company. Citi will continue to serve institutional clients in the Philippines. and through our global network as we have done for over 120 years. “