Union Bank named preferred bidder for Citibank’s Philippine assets

Citibank Philippines Union Bank of the Philippines has been named as preferred bidder by Citibank for the latter’s consumer banking division in the Philippines, Bloomberg News cited insiders in a December 1 report.

The news came after Citibank back in April this year said that it would exit the Southeast Asian and broader Asia-Pacific market for retail banking and sell off its respective assets, just keeping its regional private banking unit in Singapore.

In the Philippines, Citibank’s parent company Citigroup and Union Bank plan to continue to negotiate the terms of a potential deal with the target of reaching an agreement over the coming weeks, the report said, adding that a sale could value the Philippine assets of Citibank’s retail operations at about $1 billion, the people said.

The planned sale had drawn bids from other local financial institutions including BDO Unibank, Metrobank and Bank of the Philippine Islands.

Exit from retail banking in 13 markets

Citigroup announced it would exit consumer banking in 13 countries, most of them in Asia-Pacific, including Thailand, Malaysia, the Philippines, Indonesia, Vietnam, China, South Korea and Taiwan, as well as Australia. It means that individuals will either lose their personal accounts and banking cards with the bank at a date yet to be announced or have them transferred to the bank taking over the assets, if they wish.

As a reason, Citigroup stated it was seeking to focus on more profitable business segments such as investment banking, while bundling its wealth franchise around hubs in Hong Kong, London, Singapore and Dubai.

Among the markets hit hard by the retreat is Thailand, where Citibank set up operations in 1967 and currently offers corporate and consumer banking solutions to over one million customers, which makes it the largest foreign bank operating in the country.

Reportedly, Thailand’s second-largest bank Kasikornbank, or KBank, is interested in taking over Citibank Thailand, but no decision has been made so far, according to KBank’s CEO.

Singapore and Japanese banks as potential bidders for entire package

Singapore’s DBS Group and United Overseas Bank have expressed interest in Citigroup’s overall assets for sale in the 13 markets for which Citibank could receive around $6 billion in total.

Japanese banks Mitsubishi UFJ and Sumitomo Mitsui, along with UK-based Standard Chartered, have been mentioned as other potential bidders. In South Korea, OK Financial Group and DGB Financial Group are candidates to acquire Citibank’s local retail subsidiary.



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Union Bank of the Philippines has been named as preferred bidder by Citibank for the latter’s consumer banking division in the Philippines, Bloomberg News cited insiders in a December 1 report. The news came after Citibank back in April this year said that it would exit the Southeast Asian and broader Asia-Pacific market for retail banking and sell off its respective assets, just keeping its regional private banking unit in Singapore. In the Philippines, Citibank’s parent company Citigroup and Union Bank plan to continue to negotiate the terms of a potential deal with the target of reaching an agreement over...

Citibank Philippines Union Bank of the Philippines has been named as preferred bidder by Citibank for the latter’s consumer banking division in the Philippines, Bloomberg News cited insiders in a December 1 report.

The news came after Citibank back in April this year said that it would exit the Southeast Asian and broader Asia-Pacific market for retail banking and sell off its respective assets, just keeping its regional private banking unit in Singapore.

In the Philippines, Citibank’s parent company Citigroup and Union Bank plan to continue to negotiate the terms of a potential deal with the target of reaching an agreement over the coming weeks, the report said, adding that a sale could value the Philippine assets of Citibank’s retail operations at about $1 billion, the people said.

The planned sale had drawn bids from other local financial institutions including BDO Unibank, Metrobank and Bank of the Philippine Islands.

Exit from retail banking in 13 markets

Citigroup announced it would exit consumer banking in 13 countries, most of them in Asia-Pacific, including Thailand, Malaysia, the Philippines, Indonesia, Vietnam, China, South Korea and Taiwan, as well as Australia. It means that individuals will either lose their personal accounts and banking cards with the bank at a date yet to be announced or have them transferred to the bank taking over the assets, if they wish.

As a reason, Citigroup stated it was seeking to focus on more profitable business segments such as investment banking, while bundling its wealth franchise around hubs in Hong Kong, London, Singapore and Dubai.

Among the markets hit hard by the retreat is Thailand, where Citibank set up operations in 1967 and currently offers corporate and consumer banking solutions to over one million customers, which makes it the largest foreign bank operating in the country.

Reportedly, Thailand’s second-largest bank Kasikornbank, or KBank, is interested in taking over Citibank Thailand, but no decision has been made so far, according to KBank’s CEO.

Singapore and Japanese banks as potential bidders for entire package

Singapore’s DBS Group and United Overseas Bank have expressed interest in Citigroup’s overall assets for sale in the 13 markets for which Citibank could receive around $6 billion in total.

Japanese banks Mitsubishi UFJ and Sumitomo Mitsui, along with UK-based Standard Chartered, have been mentioned as other potential bidders. In South Korea, OK Financial Group and DGB Financial Group are candidates to acquire Citibank’s local retail subsidiary.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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