UnionBank of the Philippines has completed the acquisition of US-based Citi group’s retail banking operations in the country.

The deal, first announced in December 2021, covers Citi’s credit card, unsecured lending, and investment operations in the Philippines and is valued at PHP45.3bn ($817.12m).

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UnionBank stated that the deal strengthens its position across consumer businesses including credit cards, salary / personal loans and mortgage loans.

The acquisition will make UnionBank a top three credit card issuer in terms of usage and spending, the bank noted.

The deal will see an asset and liability transfer of the retail banking business of Citibank, Philippines Branch, sale of the shares in Citicorp Financial Services and Insurance Brokerage Philippines, and divestures of the real estate shares in Citibank Square building in Eastwood, Quezon City.

UnionBank president and CEO Edwin Bautista said: “We are now a much larger consumer bank. We added a consumer portfolio that is well-run and very profitable. This will provide us better margins and allow us to maintain our industry-leading ROE moving forward.

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“Over 1,500 top talents from Citi, including its senior management team, will be joining UnionBank. This further deepens our leadership bench. I am confident that, together, we will be able to bring the best customer experience and serve many more market segments and communities through innovation and collaboration”

For Citi, the deal is anticipated to provide a capital benefit of approximately $700m.

Citi Philippines CEO Aftab Ahmed 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.”