UnionBank warned of thin capital buffer

LISTED Union Bank of the Philippines' (UnionBank) takeover of Citi's retail business is credit positive, according to a Fitch Group unit, although it will have an impact on the Aboitiz-led lender's capital cushion once finalized.

In a report released on Tuesday, CreditSights said UnionBank will gain a major retail advantage as a result of the acquisition, which will propel it to the ninth-largest bank in the Philippines by size, up from its current position of 10th.