Metrobank buying out partner in credit card firm

Banking giant Metropolitan Bank & Trust Co. is acquiring the 40-percent stake held by partner ANZ Funds Pty Ltd. in their 14-year-old local credit card venture for P14.8 billion.

Metrobank yesterday announced a deal to increase its stake in Metrobank Card Corp. (MCC) to 100 percent from 60 percent.

Subject to regulatory approvals, Metrobank will purchase an initial 20 percent of MCC for P7.4 billion. The sale of the remaining 20 percent will be completed by the third quarter of 2018 on the same terms.

“The joint venture arrangement has created a lot of value for both partners as we transformed MCC into the number one credit card company in the Philippines,” Metrobank president Fabian Dee said in a statement.

“With this transaction, we now have a great opportunity to further expand our retail capabilities. We expect to leverage on better operational efficiencies as we eventually make MCC a wholly owned subsidiary of Metrobank,” Dee added.

The Metrobank-ANZ joint venture was formed in 2003.

MCC now has more than 1.5 million cards in force based on data from the Credit Card Association of the Philippines (CCAP).

In 2016, MCC reported total assets of P60.4 billion and a return on average equity of 36.3 percent. MCC was also number one in terms of receivables based on CCAP data.

“The sale makes sense for ANZ given our continued efforts to simplify our business and is also a good outcome for MCC and its card customers given the strength of the business,” said ANZ deputy chief executive officer Graham Hodges.