Metrobank gets BSP nod on credit card takeover

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has given Metropolitan Bank & Trust Co. (Metrobank) the green light to buy out its foreign joint venture partner in the country’s leading credit card provider.

In a disclosure to the Philippine Stock Exchange (PSE) Metrobank said it received the BSP’s approval last Dec. 28 for the acquisition of up to 40 percent stake in Metrobank Card Corp. (MCC) owned by its joint venture partner ANZ Funds Pty. Ltd.

Initially, Metrobank is spending P7.4 billion to acquire ANZ’s 20 percent stake involving 200 million shares at P37 per share this year.

On the other hand, the details of the acquisition of the remaining 20 percent of ANZ would be disclosed by the third quarter of 2018.

MCC was established in August 1985 and was then known as Unibancard Corp. In 2003, Metrobank entered into a joint venture agreement with Australia and New Zealand Banking Group Ltd. through ANZ Funds for the operation of the credit card business of MCC.

The Ty-led bank controlled MCC with a 60 percent stake, while ANZ owned the remaining 40 percent.

The listed bank said the acquisition would allow Metrobank to recognize additional earnings from MCC and at the same time improve operational efficiencies of both companies.

It added the transaction is also in line with Metrobank’s capital planning initiatives.

MCC is the leading provider of credit cards in the Philippines with more than 1.5 million cards in force based on data obtained from the Credit Card Association of the Philippines (CCAP).