Metropolitan Bank and Trust Co. is increasing its stake in credit card unit Metrobank Card Corp. (MCC) to 100 percent, in the process buying out partner ANZ Funds Pty Ltd. in the joint venture.
"The buy out of ANZ in MCC is a mutual agreement between the companies," Placido Mapa, vice president and head of Investor Relations at Metrobank, told GMA News Online.
The deal was made with ANZ Funds Pty. Ltd. (ANZ), Metrobank told the Philippine Stock Exchange on Thursday.
"Metropolitan Bank & Trust Company announced today that it entered into an agreement with its joint venture partner, ANZ Funds Pty. Ltd. (ANZ), to increase its stake in Metrobank Card Corporation up to 100 percent, Mapa said.
"Subject to regulatory approvals, Metrobank will purchase 20 percent of MCC for a consideration of P7.4 billion," the bank said in a separate statement.
The transaction will allow Metrobank to realize more earnings from the credit card business.
"Increasing our stake will leverage our operational efficiency in MCC as well as it will now become a wholly-owned subsidiary of Metrobank," Mapa told GMA News Online.
The partnership with ANZ will continue until the buy out deal is completed next year, with the remaining 20 percent to be consummated under the same terms in the third quarter of 2018.
The Metrobank-ANZ joint venture was formed in 2003, with a 60-40 equity structure in favor of the George Ty-led bank.
Citing data from the Credit Card Association of the Philippines (CCAP), Metrobank said MCC has issued more than 1.5 million credit cards in the country.
Metrobank is betting on robust consumption in the Philippines to sustain the historically strong performance of the credit card company, bank president Fabian Dee said in the statement
In 2016, MCC reported total assets of P60.4 billion and a return on average equity of 36.3 percent
ANZ Funds is an Australia-based holding company that provides banking services. —Ted Cordero/VDS, GMA News