Metrobank gets BSP nod to buy out ANZ stake in credit card venture
Local banking giant Metropolitan Bank & Trust Company has obtained approval from the Bangko Sentral ng Pilipinas to proceed with its buyout of a 40-percent stake in financing firm Metrobank Card Corp. (MCC) from partner ANZ Funds Pty Ltd.
Metrobank disclosed to the Philippine Stock Exchange on Friday it was ready to execute the purchase of the first 20 percent of MCC for P7.4 billion.
The purchase of the remaining 20 percent of MCC would be completed by the third quarter of 2018 using the same terms as the first phase, the bank added.
Once transactions have been completed, Metrobank would fully own MCC.
The deal was seen to “allow Metrobank to recognize additional earnings” from MCC and “improve operational efficiencies between MCC and Metrobank.” These were all in line with the bank’s capital planning initiatives, the disclosure said.
MCC is currently one of the leading credit card companies in the Philippines. It ranks No. 1 in terms of cards in force (1.5 million) and receivables, based on data from the Credit Card Association of the Philippines.
In 2016, MCC reported total assets of P60.4 billion and a return on average equity of 36.3 percent.
Established in August 1985, MCC was previously known as Unibancard Corp. In 2003, Australia and New Zealand Banking Group LTd. (through its wholly owned subsidiary, ANZ Funds Pty. Ltd.) entered into a joint venture with Metrobank for operation of the cards business of MCC, acquiring a 40-percent stake in the business.
For its part, ANZ divested from the venture as part of efforts to simplify its business in the Philippines, where it will henceforth focus on institutional banking.
