THE THRIFT BANKING arm of UnionBank of the Philippines, Inc. has completed its consolidation with Philippine Resources Savings Banking Corp. (PR Savings Bank), in line with the central bank’s efforts to strengthen the industry through lenders’ mergers and acquisitions.
CitySavings Bank, Inc. said in a statement sent to reporters on Saturday that it has merged with PR Savings Bank, with the former as the surviving entity.
CitySavings President and Chief Executive Officer (CEO) Lorenzo T. Ocampo said the merger paves the way for the Aboitiz-led bank to diversify into the motorcycle financing market.
“Expanding our physical network and capitalizing on our operational efficiency will allow us to bring the CitySavings experience of superior customer service to more Filipinos,” Mr. Ocampo said.
Isabela-based PR Savings Bank is focused on motorcycle, agri-machinery, and teachers’ salary loans, serving over 131,000 borrowers mostly from the mass market segments.
PR Savings is part of the Ropali Group of Companies, a mid-sized conglomerate with focus on motorcycles and agricultural machinery.
The merger is in line with the push of the Bangko Sentral ng Pilipinas (BSP) to improve financial inclusion in the country and strengthen the banking industry through mergers and consolidations.
A memorandum posted by the central bank in late 2016 lays out a set of incentives to reinforce the BSP’s call for banks and quasi-banks (QB) to consolidate to fortify their financial footing.
Lenders and QBs can seek regulatory relief from the BSP, convert or upgrade head offices branches and other offices, and relocate branches within a year in cases of duplication in certain areas, among other incentives.
“Our mission has always been to unlock the economic potential in our communities, be they in the cities or in the countryside, by delivering financial services to our unbanked and underbanked countrymen,” PR Savings Bank President and CEO Catalino S. Abacan said.
“Though the name ‘PR Savings Bank’ will cease to exist after this merger, we as CitySavings will continue to embrace our commitment to this mission.”
The merger of the two banks was announced in January last year, with the BSP green-lighting the acquisition in June.
PR Savings Bank, the 15th largest thrift bank in asset terms, operates 102 branches and other banking offices.
Meanwhile, Cebu-based CitySavings is the sixth largest savings bank in the country. It provides a range of mass market financial products and services such as salary loans to teachers, pension loans, seafarer loans and traditional deposit products. It has 115 offices nationwide. — K.A.N. Vidal

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