Union Bank of the Philippines (UnionBank) has announced that its trust subsidiary, Union Bank Investment Management and Trust Corporation (UBIMTC), will merge with a unit of ATR Asset Management (ATRAM).
In a disclosure to the Philippine Stock Exchange, UnionBank says the transaction will consolidate Union Bank Investment Management and Trust Corp with Atram Trust Corp (ATC). While the merger is still subject to regulatory approvals, ATC is expected to be the surviving entity post-merger.
“The merger will create a leading player in the trust industry with combined assets under management (AUM) of over 485 billion pesos (US$8.27 billion), significantly increasing scale and capabilities,” UnionBank says.
Edwin Bautista, UnionBank president and chief executive officer, says the merger will allow Unionbank to offer “more tailored services” to its customer base, including its large wealth client base, which UnionBank gained after it acquired Citibank Philippines’ consumer banking business.
“We are committed to ensuring they have access to the best financial solutions available while also creating broader career opportunities for our employees in a larger and very dynamic organization,” Bautista says, adding UnionBank’s digital expertise will greatly benefit ATRAM’s innovative asset management solutions.
Following the completion of the merger, the two companies say they will provide clients with “a diverse range of high-quality financial products”.
Scaling up
ATRAM CEO Michael Ferrer sees the merger as a milestone for his company in terms of digital innovation.
“Together, we will change the game and redefine the asset management landscape in the Philippines,” Ferrer says. “Our clients will benefit from an expanded suite of investment solutions, enhancing the value and service we deliver.”
This is not the first time ATRAM, a leading standalone asset manager in the country, has completed a transaction that has expanded its scale through a universal bank in the country in recent weeks.
Prior to the planned merger with UnionBank’s trust unit, ATRAM last month also fully acquired Metrobank’s asset management unit, First Metro Asset Management.
