Connect with us

Hi, what are you looking for?

Economy

BSP to ensure smooth Citi exit as rivals circle loan book

The Bangko Sentral ng Pilipinas (BSP) said it will closely monitor Citigroup, Inc. exit from retail banking in the Philippines to ensure a smooth transition as Philippine banks express interest in acquiring the US bank’s loan book.

“Citi Philippines, in its report to the BSP, clarified that there will be no immediate change in its retail business operations and its retail customers shall be serviced in a business-as-usual manner until further notice,” the central bank said in a statement Friday.

Citi announced last week that it will be exiting the consumer banking business in 13 Asia-Pacific markets including the Philippines, but it will keep its corporate banking business.

“The BSP is coordinating with Citi Philippines to ensure a smooth transition, including putting in place appropriate mechanisms to timely respond to any queries and concerns of its depositors and other stakeholders,” the central bank said.

Citi is also planning to exit the consumer business in Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, Poland, Russia, Taiwan, Thailand and Vietnam, while retaining its institutional clients group.

Various Philippine banks have expressed interest in acquiring Citi Philippines’ assets, most recently BDO Unibank, Inc. and East West Banking Corp. (EastWest Bank).

“We will likely take a look at it. It’s a good business franchise that any bank will be interested in so it’s not something that you can ignore,” Nestor V. Tan, BDO’s president and CEO, said during the BDO shareholder meeting Friday.

“However, we have to be cognizant that because of our size, the overlaps and the stickiness of the business for sale may be a factor,” he added.

EastWest Bank President and CEO Antonio C. Moncupa, Jr. said Citi Philippines, which has the largest credit card business in the country by issuance and also a significant wealth management operation, controls businesses where EastWest Bank “wants to grow.”

“We are certainly very interested to know more about the opportunity and see how it fits our strategic intent towards our growth and profitability that is sustainable. We’ll see what happens, let’s wait for developments,” Mr. Moncupa said when asked at his bank’s shareholder meeting Friday.

On Thursday, Bank of the Philippine Islands (BPI) also expressed interest in bidding for Citi’s portfolio.

“While we confirm our interest, we are in no position to comment on Citibank’s plans. There is no other material information to disclose at this time,” BPI told the stock exchange Friday.

Citi established operations in the Philippines in 1902. It currently has over 8,000 employees across its corporate and retail businesses, as well as in service centers. — Beatrice M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

Virgin Orbit’s next satellite launch will take place from the UK, following the success of the “Straight Up” mission, which lifted off from Mojave...

Investing

Post Office collection and cash delivery workers are to stage a one-day strike later this month in a dispute over pay. Members of the...

Investing

UK consumers cut back on credit card borrowing in May amid fears over rising interest rates and a slowing economy driven by a cost...

Investing

London City airport is seeking to overturn its Saturday flight ban and raise by 40% the limit on its passenger numbers. A local residents’...

Investing

The bank said that it was introducing a £1,200-a-year pay increase from August 1, which would start to show in next month’s pay packets....

Investing

Postmasters caught up in the Horizon IT scandal say that they are still being “left in the dark” about a compensation package after the...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.