Citi to merge thrift bank, personal loans unit in RP

AMERICAN FINANCIAL services giant Citibank is set to merge its thrift bank and personal loans subsidiaries in the Philippines within the next two to three months as part of a strategy to boost its domestic consumer banking business.

The planned merger of Citibank Savings (Citisavings) and Citi Financial will create a financial entity with P15 billion in assets.

Citi country manager Mark Jones told reporters at a recent briefing that the merger would expand customer portfolio and boost overall business operations.

“In Citisavings, we have a lot of deposits and very few assets and in Citi Financial, we have a lot of assets and no deposits. If we put them together, we get a more efficient funding,” Jones said.

With one system and one management structure, he added that the merger would translate to cost savings.

“We can cross-sell easily because it’s the same legal vehicle, so it’s good for the company in terms of funding and good for the customer,” he said.

Citibank acquired Citi Financial, which has 15 branches, about six years ago although the lending company has been in operation for many years before that.