UnionBank sets criteria for target acquisitions.
MANILA, Philippines Aboitiz-owned Union Bank of the Philippines has set the criteria for new acquisitions as it continues to look for more opportunities to boost its bid to become a great retail bank by 2020.Edwin Bautista, president and CEO of UnionBank, said in an interview the country's 9th largest bank is on the look out for new targets that could further expand its consumer and microfinance portfolio."To us it doesn't matter whether you are a rural bank or if you are a savings banks as long as you have the right portfolio for us and the right distribution geographically," he said.
According to Bautista, the new prey could be savings or rural banks that have a solid consumer and microfinance base."We are not looking for those who are focused on business loans.
What is important are the microinsurance in the countryside that we cannot reach," he added.UnionBank's City Savings Bank Inc.
is in the middle of taking over Isabela-based thrift bank Philippine Resources Savings Bank after it signed a share purchase agreement with the ROPALI group to acquire 100 percent of the common shares of PR Savings Bank.element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1The Aboitiz Group is spending about P6.12 billion for the acquisition of the interest of the ROPALI Group and another P890 million for the preferred shares of the World Bank's International Finance Corp.
(IFC) in PR Savings Bank.About 90 percent of the value of the transaction would be settled upon closing and the remaining 10 percent would be the retention amount.
PR Savings Bank is the 15th largest thrift bank in the country, with assets of P13.2 billion as of end September. It has 102 offices, mostly in Luzon.
The bank is presently engaged in extending motorcycle, agri-machinery, and teachers' salary loans, serving over 131,000 borrowers, mostly from the mass-market segment.CitySavings Bank, acquired by UnionBank in 2013 for more than P6 billion, currently has 106 offices nationwide.
UnionBank, founded in 1968 as Union Savings and Mortgage Bank before it became a universal bank in 1992, has undertaken two bank mergers , first with International Corporate Bank in 1993 and with International Exchange Bank in 2006.It acquired 11-branch Cebu-based First-Agro Industrial Bank (Fairbank) through Union Properties Inc. and City Savings Bank in December 2016.