Metrobank buys out credit card stake of Australia's ANZ

METROBANK. Metropolitan Bank and Trust Company founder George Ty at the annual stockholders' meeting of GT Capital Holdings Incorporated, the bank's parent company, in May 2017. File photo by Alecs Ongcal/Rappler

MANILA, Philippines – The Philippines' second biggest bank said on Thursday, October 19, it will spend $288 million buying out the minority stake that Australia's ANZ has in a credit card joint venture.

Metrobank will take over ANZ's 40% share in Metrobank Card Corporation as part of a deal to turn the tie-up into a wholly-owned subsidiary.

Metrobank, short for the Metropolitan Bank and Trust Company, formed the 60-40 joint venture with ANZ in 2003.

Metrobank head of investor relations Joey Mapa said the sale was "a mutual agreement."

"We feel we are in a position to manage it on our own as it eventually becomes a 100% subsidiary," Mapa told Agence France-Presse.

Metrobank said the sale would provide it with additional earnings and improve efficiencies between the bank and the credit card company.

"With this transaction, we now have great opportunities to further expand our retail capabilities," Metrobank president Fabian Dee said in a statement. (READ: George Ty and MVP transaction is best deal of 2016 – IHAP)

ANZ deputy chief executive officer Graham Hodges said in a statement that "the sale makes sense for ANZ given our continued efforts to simplify our business." – Rappler.com