Citi Agrees To Sell Philippines Consumer Bank To UnionBank Of The Philippines

Citi said it agreed to sell Philippines Consumer Bank to UnionBank of the Philippines.

UnionBank will pay Citi cash consideration for the net assets of the acquired businesses plus a premium of approximately $908 million.

The transaction covers Citi's local credit card, unsecured lending, deposit and investment businesses, as well as Citicorp Financial Services and Insurance Brokerage Philippines Inc., which provides insurance and investment products and services to retail customers.

The agreement covers all related Citi staff, with approximately 1,750 consumer bank and supporting employees expected to transfer to UnionBank upon close of the transaction.

Upon closing, Citi expects the transaction to result in the release of approximately $300 million of allocated tangible common equity, as well as an increase to tangible common equity of approximately $500 million. As previously announced, Citi's exit from its consumer franchises in 13 markets across Asia and EMEA is expected to release approximately $7 billion of allocated tangible common equity over time.

The completion of the transaction is expected in the second half of 2022.

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