Monday, June 5, 2023
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business

Fitch: Acquisition of Citi unit credit positive for UnionBank

Julito G. RadabyJulito G. Rada
January 4, 2022, 7:15 pm
in Business, Money
Reading Time: 3 mins read
A A
Share on FacebookShare on TwitterShare on Email

The acquisition by Union Bank of the Philippines of Citi’s consumer banking business in the Philippines is credit positive for the Aboitiz Group lender and will boost its retail business, according to the CreditSights report of Fitch Group released Tuesday.

Union Bank ranked as the 10th largest bank by size in the country with total assets of P767.7 billion and net loans of P341.5 billion as of September 2021. The total assets and gross loans of Citiʼs Philippines consumer business were P89.5 billion and P59.7 billion, respectively as of June 2021.

“UBP will be bumped up a spot to 9th place post-acquisition. In credit cards, however, growth gets significantly fast-tracked as this catapults UBP from its current 8th placing all way to Citiʼs current position of 3rd/4th,” the report said.

It said Union Bank’s present customer base of 200,000 with a transaction value of P8 billion is relatively low compared to Citiʼs one million credit cardholders worth P55 billion.

“Overall, our view is that the acquisition is credit positive in the long haul but the immediate capital impact is also significant – Citiʼs local consumer business would be a great complement to any of the smaller banks in general, as its larger scale and greater strength in the upscale consumer market and wealth management businesses would mean few overlaps with the existing retail units of the smaller banks,” the report said.

It said product expertise gave the Citi franchise a strong foothold in the retail market. “Any medium-sized bank that absorbs the Citi business stands to fast-track growth and benefit from a unit that is already capital accretive from day one. We also like that UBP is porting the whole Citi team over as this increases the likelihood of smooth running after the transaction closes,” it said.

It said success in the longer term would depend on whether management could ensure that the key aspects which made the Citi consumer franchise successful in the Philippines are not lost during the integration process, to minimize the attrition of customers acquired.

The sale of Citi’s consumer banking business to UnionBank came after an extensive auction process that also drew bids from the first-tier Philippines banks BDO Unibank Inc. of the Sy group, Metropolitan Bank & Trust Co. and the Bank of the Philippine Islands.

Included in the transaction are Citiʼs local credit card, personal loans, wealth management and retail deposit businesses as well as several of Citiʼs real estate assets in the Philippines, namely Citibank Square in Eastwood (Manila), three full-service bank branches, five wealth centers and two bank branch lites. Julito G. Rada

Union Bank will pay Citi cash consideration for the net assets of the acquired businesses, which were valued at P9.7 billion as of June 30, 2021 but subject to closing adjustments, plus a premium of P45.3 billion, taking the total consideration to P55 billion.

Both parties expect the completion of the transaction in the second half this year, subject to the timing of regulatory approvals. Union Bank expects integration of the acquired portfolio with its own businesses to be completed by mid-2023.

Tags: Aboitiz GroupCitiCreditSightsFitch GroupUnion Bank of the Philippines
ADVERTISEMENT
Julito G. Rada

Julito G. Rada

Related Posts

5-month investment pledges topped P560b

byOthel V. Campos
June 4, 2023, 8:05 pm
0
8
5-month investment pledges topped P560b

Investment pledges received by the Board of Investments crossed the P500-billion mark in the first five months, boosting the agency’s...

Read more

MREIT plans to include malls in its portfolio

byJenniffer B. Austria
June 4, 2023, 8:00 pm
0
8
How chocolate could counter climate change

MREIT Inc., the real estate investment arm of Megaworld Corp., said it is open to adding shopping malls in its...

Read more

June power rates to rise as distribution rate refund ends

byAlena Mae S. Flores
June 4, 2023, 7:55 pm
0
8
Meralco deploys 69 more electric vehicles

Manila Electric Co. said over the weekend consumers may experience higher electricity rates in June with the completion of the...

Read more

Iloilo consumers start receiving bill deposit refunds from MORE

byAlena Mae S. Flores
June 4, 2023, 7:50 pm
0
8
Iloilo consumers start receiving bill deposit refunds from MORE

MORE Electric and Power Corp. said over the weekend its consumers in Iloilo City started to receive their bill deposit...

Read more

Gov’t super app to improve business environment, says PLDT president

byDarwin G. Amojelar
June 4, 2023, 7:45 pm
0
8
SBP to prepare FIBA hosting venues once lockdown is lifted

PLDT Inc. said it supports the newly-launched supper app of the Marcos administration as it will further improve the ease...

Read more

DOF eyes P2.5b from sale of idle state assets this year

byJulito G. Rada
June 4, 2023, 7:40 pm
0
8
Bonoan gets past CA, Tulfo grilled on citizenship

The government is eyeing to raise P2.5 billion from the privatization of idle assets to finance vital development projects this...

Read more

Print Edition

View More

Recent Posts

  • For people and planet
  • #BeatPlasticPollution
  • Gov’t seeks to lessen dependency on ‘ayuda’
  • ‘Too many cars, too few mass transit systems’ worsen PH traffic
  • PAGASA: 2 LPAs may enhance ‘habagat’
  • PH gets 1st batch of bivalent COVID vax from Lithuania
  • Local Delicacy
  • Corporates, LGUs join hands to eliminate plastic pollutants

Advertisement

Latest News

PH gets 1st batch of bivalent COVID vax from Lithuania

byMacon Ramos-Araneta
June 5, 2023, 12:55 am
0
8
PH gets 1st batch of bivalent COVID vax from Lithuania

1ST BATCH. Close to 400,000 doses of bivalent COVID-19 vaccines donated by Lithuania arrive in the country Saturday evening. DOH...

Read more

Local Delicacy

byJoey O. Razon
June 5, 2023, 12:50 am
0
8
Local Delicacy

Residents of Barangay Aurelio sell ‘patupat’ for the ‘MAY-KAN: Discovering flavors of the North through Gastronomic Experience’ in Pangasinan The...

Read more

Corporates, LGUs join hands to eliminate plastic pollutants

byPatricia Bianca S. Taculao
June 5, 2023, 12:45 am
0
8
Corporates, LGUs join hands to eliminate plastic pollutants

Some hundred years ago, plastics changed how humans lived and became a milestone in history that provided society with ease...

Read more

SM Foundation renews partnership with the Department of Agriculture to promote urban gardening

byManila Standard
June 5, 2023, 12:40 am
0
8
SM Foundation renews partnership with the Department of Agriculture to promote urban gardening

From left: Pasay City Mayor chief of staff Peter Eric Pardo, Pasay City tourism and cultural affairs office chief Teresita...

Read more

Limiting plastic output protects the environment

byP. Y. Deligero
June 5, 2023, 12:35 am
0
8
Globe says NO to plastic, launches ‘Wag Sa Single Use Plastic’ campaign

The United Nations Environment Program’s (UNEP) annual global event, World Environment Day, focuses this year on a single goal: #BeatPlasticPollution....

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App