banks in the Philippines

Citi Philippines ‘very optimistic’ for growth even after consumer business sale

Lance Spencer Yu

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Citi Philippines ‘very optimistic’ for growth even after consumer business sale

CITIBANK. A Citibank ATM is seen in Los Angeles, California, March 10, 2015.

Lucy Nicholson/Reuters

'We are in a very good space. The Philippines is clearly one of the fastest-growing countries in the region, in the fastest-growing region globally,' says Citi Philippines CEO Paul Favila

MANILA, Philippines – Citi Philippines continues to see much potential for growth with its institutional clients and service center functions, even after UnionBank took over its consumer business in a blockbuster acquisition.

“We are very optimistic about the opportunities that lie ahead of the Philippines. I think we are in a very good space. The Philippines is clearly one of the fastest-growing countries in the region, in the fastest-growing region globally, so that speaks a lot…about what our aspirations are in terms of our growth prospects,” said Citi Philippines country head and chief executive officer Paul Favila in an interview on ANC’s Market Edge on Thursday, March 16.

Favila pointed to Citi’s global presence and relationship with institutional clients as growth drivers following the sale of its consumer business, which included a strong credit card user base. According to Favila, Citi as a whole currently deals with around 950 multinational corporations across 95 jurisdictions. 

“Roughly a hundred top tier local corporates are banking with us. The strength of Citi has always been in its globality. We are the most global bank,” the Citi Philippines head said.

Besides institutional banking, Citi also sees growth by adding functions to its service center. 

“It’s not just on the business side actually. I mentioned earlier that we have one of the largest service centers for Citi globally, and we’re also looking to bring in more functions into that service center. We are looking at growth from all directions,” Favila said.

Even after Citi Philippines’ consumer business employees joined UnionBank, Favila said his team is still around 7,000-strong.

“Definitely we are looking to bring in more high-value functions into the country as we try to become more efficient globally. This could be in the areas of finance or even operations,” he added.

UnionBank integration

Favila said the integration of Citi Philippines’ consumer business with UnionBank is also “very much on track.”

In mid-2022, UnionBank completed the acquisition of Citi’s consumer business, a move that made UnionBank one of the Philippines’ top three credit card issuers in terms of usage and spends.

UnionBank president and CEO Edwin Bautista previously said that among their priorities was the “seamless integration of the acquired Citi consumer business, which includes customers and employees.”

In carrying out the integration, Favila said Citi focused on its customers, employees, and the regulatory environment.

“I must say, we delivered well on all three aspects, but most importantly, for our ex-colleagues, they’re very happy with the outcome, and I think they’re in a very good place,” he said.

The full integration, a process that was expected to involve more than 1,500 Citi Philippines employees joining UnionBank, was earlier estimated to be completed by mid-2023. – Rappler.com

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Lance Spencer Yu

Lance Spencer Yu is a multimedia reporter who covers the transportation, tourism, infrastructure, finance, agriculture, and corporate sectors, as well as macroeconomic issues.