CitySavings’ bid for PR Savings gets green light

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A branch of City Savings Bank, Inc. is seen this file photo. — BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas has approved the plan of UnionBank of the Philippines’ savings lending arm to acquire Philippine Resources Savings Bank Corp. (PR Savings) of the Ropali Group.

The Aboitiz-led lender said in a regulatory filing on Thursday that the acquisition of 100% common shares in PR Savings by UnionBank’s subsidiary CitySavings Bank was approved by the BSP.

In a letter sent on June 20, the central bank also authorized in principle the merger between PR Savings and CitySavings, with the latter as the surviving entity.

“The acquisition is in line with the company’s goal to expand its mass market reach consistent with its vision to promote inclusive growth in the country,” UnionBank said in the disclosure.

In a previous statement, the listed bank said the acquisition will enable City Savings to “substantially expand” its reach in Luzon as well as enter new markets such as motorcycles and agri-financing.

In January, UnionBank’s savings lender said it has signed a share purchase agreement with the Ropali Group to fully acquire PR Savings.

The lender is focused on motorcycle, agri-machinery and teachers’ salary loans, serving over 131,000 borrowers, mostly from the mass market segments.

PR Savings Bank was the 15th largest thrift bank in the country in asset terms as of end-2017 with P13.02 billion. The Isabela-based bank, which started its operations in 1977 as Rural Bank of Naguilian (Isabela), Inc., operates 46 branches and 56 other banking offices.

PR Savings is part of the Ropali Group of Companies, a mid-sized conglomerate with focus on motorcycles and agricultural machinery.

UnionBank shares dropped 10 centavos or 0.11% to close at P88.60 apiece. — Karl Angelo N. Vidal