UnionBank expects rise in profit after Citi integration | ABS-CBN
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UnionBank expects rise in profit after Citi integration
UnionBank expects rise in profit after Citi integration
UnionBank President Edwin Bautista said they are looking at more profits this year following the completion of the Citi migration last March. Jekki Pascual, ABS-CBN News
UnionBank President Edwin Bautista said they are looking at more profits this year following the completion of the Citi migration last March. Jekki Pascual, ABS-CBN NewsMANILA -- The Aboitiz-led Union Bank of the Philippines is looking at higher growth this year following the completion of the acquisition of Citibank consumer business in the country.
MANILA -- The Aboitiz-led Union Bank of the Philippines is looking at higher growth this year following the completion of the acquisition of Citibank consumer business in the country.
This was after the bank's net income fell in 2023.
This was after the bank's net income fell in 2023.
At the company’s virtual Annual Stockholders Meeting, UnionBank President Edwin Bautista announced that the integration and migration of Citibank customers to UnionBank was completed in March this year, and he expects this to have a positive impact on its financial record.
At the company’s virtual Annual Stockholders Meeting, UnionBank President Edwin Bautista announced that the integration and migration of Citibank customers to UnionBank was completed in March this year, and he expects this to have a positive impact on its financial record.
In 2023 during the transition phase, Bautista said they had to operate two parallel systems to serve both UnionBank customers and Citibank customers. This lowered their net income from P12.7 billion in 2022 to P9.2 billion in 2023.
In 2023 during the transition phase, Bautista said they had to operate two parallel systems to serve both UnionBank customers and Citibank customers. This lowered their net income from P12.7 billion in 2022 to P9.2 billion in 2023.
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“We still carried the parallel IT systems costs prior to the migration of the acquired Citi consumer business. The bank’s operating expenses went up 43 percent to P45 billion on account of the full-year impact of the investments we made on the acquisition of the Citibank consumer business, and on UnionBank digital,” he said.
“We still carried the parallel IT systems costs prior to the migration of the acquired Citi consumer business. The bank’s operating expenses went up 43 percent to P45 billion on account of the full-year impact of the investments we made on the acquisition of the Citibank consumer business, and on UnionBank digital,” he said.
He stressed that starting April this year, they are now operating only one IT system, and this would mean less operating costs for the company.
He stressed that starting April this year, they are now operating only one IT system, and this would mean less operating costs for the company.
Bautista said what was seen in 2023 was just a temporary decline, as he looks forward to what the acquisition will bring to UnionBank.
Bautista said what was seen in 2023 was just a temporary decline, as he looks forward to what the acquisition will bring to UnionBank.
“In addition to cost savings, the migration will enable the bank to enhance services for Citi customers with features such as real-time digital account opening, free ATM withdrawal in the world, expanded branch access, and improved offerings,” he said.
“In addition to cost savings, the migration will enable the bank to enhance services for Citi customers with features such as real-time digital account opening, free ATM withdrawal in the world, expanded branch access, and improved offerings,” he said.
Bautista said that there were already 23,000 new credit card users per month in 2023, or about three times higher than previous years. In just the first three months of this year, new credit card users hit 50,000 per month.
Bautista said that there were already 23,000 new credit card users per month in 2023, or about three times higher than previous years. In just the first three months of this year, new credit card users hit 50,000 per month.
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Prior to the acquisition, Citi was among the top credit card issuers in the country.
Prior to the acquisition, Citi was among the top credit card issuers in the country.
The credit card business is now around a third of the bank’s revenues, and he hopes that will further rise in the years to come.
The credit card business is now around a third of the bank’s revenues, and he hopes that will further rise in the years to come.
“Our customers have now grown to approximately 40 million individuals, averaging an annual increase of around 2 million customers per year since 2019,” Bautista added.
“Our customers have now grown to approximately 40 million individuals, averaging an annual increase of around 2 million customers per year since 2019,” Bautista added.
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