PR Savings Bank sells to Aboitizes

City Savings Bank Inc., Union Bank of the Philippines' thrift bank unit, is buying Isabela-based PR Savings Bank, acquiring 100% common shares of it.

Photo source Rappler

City Savings Bank chairman and Union Bank senior executive vice president Eugene S. Acevedo signed the share purchase agreement (SPA) with ROPALI group chairman and founder Mr. Roberto P. Alingog. "This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country," UnionBank's president and incoming chief executive officer Edwin Bautista said. The Ropali Group represents 127.72 million common shares, equivalent to 66.27% of PR Savings Bank’s outstanding capital. The transaction is closing conditions and regulatory approval by the second quarter of 2018. The total purchase price is less than 10% of the Aboitiz-led bank's book value. The acquisition of PR Savings Bank is in line with efforts of the Bangko Sentral ng Pilipinas to improve financial inclusion and strengthen the banking industry via mergers and consolidation. PR Savings Bank is the 15th largest thrift bank in the Philippines, with assets totalling P13.2 billion. It has 102 offices located mostly in Luzon. Its lending services involve motorcycle, agri-machinery, and teachers’ salary loans, with over 131,000 borrowers, mostly from the mass market segment. CitySavings is the fifth largest thrift bank in the country, with assets of P74.444 billion. Its mass market products and services include loans to OFWs, salary loans to public and private school teachers, pension loans to GSIS and SSS members, and traditional deposit products

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