Union Bank Of The Philippines · PSE:UBP
Union Bank Of The Philippines — Merger or Acquisition (December 2021)
11 slides from Union Bank Of The Philippines's merger presentation, Dec 23, 2021
Slide 1: UnionBank's Acquisition of Citi's Consumer Banking Business in the Philippines
UnionBank’s Acquisition of Citi’s Consumer Banking Business in the Philippines 23 December 2021
Slide 2: Disclaimer
Disclaimer The information provided in this presentation is provided only for your reference. Such information has not been independently verified and, as such, is not guaranteed to be accurate nor complete. Neither UnionBank of the Philippines (“UBP”) nor any of its affiliates, shareholders, direct
Slide 3: Transaction Summary
Transaction Summary • UnionBank of the Philippines (“UBP”) has entered into a Share and Busines Transfer Agreement to acquire Citigroup, Inc.’s (“Citi”) consumer banking business in the Philippines (“Target”). The Target is comprised of: − Certain assets and liabilities of Citibank, N.A. Philippines
Slide 4: Strategic Rationale
Strategic Rationale 1 High Quality and Profitable Consumer and Wealth Management Portfolio 2 Transformational Opportunity – Accelerates “Great Retail Bank” Goal 3 Earnings Accretive from Significant Synergies 4
Slide 5: High Quality and Profitable Consumer and Wealth Management Portfolio
1) High Quality and Profitable Consumer and Wealth Management Portfolio Market Leader in Credit Cards Pre-eminent Wealth Management Provider • 3rd by market share (1) • #1 ranking by Asian Banker • 879K accounts; Php 53 Bn average net receivables (2) • 47K customers (3) • Active customer base with 2
Slide 6: High Quality and Profitable Consumer and Wealth Management Portfolio (cont'd)
1) High Quality and Profitable Consumer and Wealth Management Portfolio (cont’d) Focus on Digitalization, Cross-sell, and Customer Service Experienced Management and Staff • 18 data analysts with average data experience of 17 • 1,750 in-scope staff (3) years (1) • 25 years average experience of mana
Slide 7: Transformational Opportunity – Accelerates "Great Retail Bank" Goal
2) Transformational Opportunity – Accelerates “Great Retail Bank” Goal a) Leapfrogs UBP’s Credit Card Business to #4 from #10 Credit Card ENR (Php Bn) (1)(2) >8x 100 85 76 70 75 59 52 50 31 30 25 17 12 12 7 0 BDO MBT BPI UBP+Citi Citi RCBC EW SECB PNB HSBC UBP b) Boosts Credit Card Accounts to >1MM;
Slide 8: Transformational Opportunity – Accelerates "Great Retail Bank" Goal (cont'd)
2) Transformational Opportunity – Accelerates “Great Retail Bank” Goal (cont’d) d) Consumer to Grow to ~50% of Loans and Net Revenues e) Higher NIMs and Revenues from Higher Retail Mix Loans by Segment Pro Forma NIM As of 30 June 2021 6M2021 5.5% Commercial & Commercial & SME SME 22% Consumer Consum
Slide 9: Earnings Accretive from Significant Synergies
3) Earnings Accretive from Significant Synergies Key strengths of Citi Key Strengths of UnionBank • Market leader in credit cards (#3) and wealth management (#1) • Industry-leading digital capabilities with innovation as a differentiator • Best-in-class product features • Diversified and experienced
Slide 10: UnionBank's Commitment to Citi Employees and Customers
UnionBank’s Commitment to Citi Employees and Customers Citi Employees Citi’s Customers – Credit Cards Citi’s Customers – Wealth Management Employee Commitment “More than a Card and Loan for U” “More than a Bank Account for U” ✓ Employment to all in-scope employees – terms and ✓ All Citi products, se
Slide 11: Dedicated to Ensuring a Smooth Transition
Dedicated to Ensuring a Smooth Transition Targeting completion in the second half of 2022 2021 2022 2023 2024+ Integration Pre-Closing Transitional Services Agreements (~12 months) Full integration Phases Key Activities • Migration planning • Continued infrastructure building and testing • Complete
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