Citi has announced the completed sale of its Philippines consumer business to local lender Unionbank.
Citi has completed the sale of its Philippines consumer business to Unionbank, according to a statement. The deal covers Citi’s local credit card, unsecured lending, deposit and investment businesses as well as Citicorp Financial Services and Insurance Brokerage Philippines. Approximately 1,540 consumer bank and supporting employees will also be transferred to the Filipino lender.
The deal resulted in a capital benefit of approximately $700 million while Citi will remain in the Philippines’ institutional business which services over 950 multinational corporations as well as top local corporates.
2 Out of 14
The sale marks the second completed divestiture to date out of the 14 consumer markets that Citi had previously announced it would exit across Asia, Europe, Middle East and Mexico.
Deals have been signed in nine of these markets including the completed divestiture of the Australian business to NAB alongside the ongoing process of winding down the South Korea business.
«UnionBank is the optimal owner for our local consumer business and we wish our former employees and customers continued success in the future,» said Citi legacy franchises chief executive Titi Cole. «We are very pleased with today’s announcement, and we will use the capital generated to invest in our strategic priorities.»
