BDO sets eye on Citi Philippines’ consumer banking business

Sy-led lender BDO Unibank Inc. is also eyeing to absorb the retail banking portfolio of Citi Philippines, following the announcement that the American banking giant will be unwinding its consumer franchises in 13 countries, including the Philippines.

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

Last week, Citigroup announced it will be closing its consumer banking business in 13 countries, including the Philippines as part of a refocusing strategy concentrating its consumer banking presence in areas with “greatest scale and growth potential” such as Singapore, Hong Kong, the United Arab Emirates, and London. 

Nonetheless, its Institutional Clients Group or wholesale banking business will continue to serve clients in the Philippines and the 12 other markets where it intends to unwind its consumer banking operations.

Citi Philippines has since clarified that its ATMS, call centers and offices, will continue to operate for the time being and customers can continue to conduct transactions “until we notify customers of any changes.” 

Tan said BDO has to be “cognizant” due to the lender’s size, noting potential overlaps with its own business.

Ayala-led Bank of the Philippine Islands (BPI) has also expressed interest to bid for the retail and consumer businesses of Citi Philippines. 

In the first quarter of 2021, BDO booked a net income of P10.4 billion, up 19% year-on-year on the back of a “resilient business franchise despite the continuing challenges brought by the COVID-19 pandemic.”

In the first three months of the year, BDO’s loans dipped by 1% to P2.2 trillion, while total deposits went up by 2% to P2.6 trillion.

The bank said it remains resilient in the face of the continuing challenges of the health crisis and will continue to strengthen its business franchise and invest in its digital infrastructure with the ongoing implementation of its strategic programs. — RSJ, GMA News