Metrobank buying out ANZ’s 40% stake in credit card venture

Subject to regulatory approvals, Metrobank will purchase an initial 20 percent of MCC for a consideration of 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. We expect that the historically strong performance of MCC can be sustained on the back of robust consumption spending,” Metrobank president Fabian Dee said in a press 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.

Metrobank’s joint venture with ANZ was formed in 2003. Since then, MCC has become a 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).

For his part, ANZ deputy chief executive officer Graham Hodges said: “This has been a highly successful joint venture for both ANZ and Metrobank creating the leading credit card company in the Philippines. 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.”

Nonetheless, Hodges said ANZ “remains committed to its institutional business in the Philippines.”

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.