BPI acquires 10% stake in Rizal Bank Incorporation

MANILA, Philippines – Ayala-led Bank of the Philippine Islands (BPI) is deepening its reach in the microfinance space to serve unserved and underserved Filipinos through the acquisition of a 10 percent stake in Rizal Bank Inc. (RBI).

BPI president and CEO Cezar Consing said the bank is now the exclusive local equity partner of the CARD Mutually Reinforcing Institutions (CARD MRI) Banking Group with the acquisition of a minority stake in the Laguna-based microfinance-oriented rural bank.

“BPI’s partnership with RBI reaffirms BPI’s vision to be the leading bank with strong focus on financial inclusiveness and sustainable growth. RBI’s emphasis on forging trust and building relationship with its clients is aligned with BPI’s own customer-centric efforts,” Consing said.

The equity investment, including the final terms and conditions, is subject to the approval of the Bangko Sentral ng Pilipinas (BSP). The amount of acquisition was not disclosed.

BPI chairman Jaime Augusto Zobel de Ayala led the signing of the agreement together with Consing, RBI chair Flordeliza Sarmiento, CARD Inc. chairman Jaime Aristotle Alip, and incoming RBI president and CEO Elma Valenzuela.

Available data showed assets of RBI stood at P1.32 billion as of end-June this year. The bank’s client base reached 121,633 of which 87,045 have outstanding loans.

Loans disbursed by RBI amounted to P305.98 million in end-June. Its outstanding loans have reached P956.47 million while total deposits amounted to P772.89 million.

RBI has a branch network of 67 including eight branches and 55 service offices. Greg and Baby Suarez founded the bank in May 1996. CARD MRI took over RBI in January 2013.

Sarmiento said the bank provides the poorest of Filipinos access to financial services such as microfinance loans and savings.

“Having BPI as our partner will open opportunities for us to expand and further improve our services for the socio-economically challenged families. This is consistent with our goal of reaching more families by providing a client-focused and financially inclusive products and services,” Sarmiento said.

Alip said CARD MRI has served more than 3.6 million clients all over the Philippines. Its total assets amounted to P7.18 billion as of end July.

“It is part of our mission to partner with institutions with the same goals as CARD MRI. Together with BPI and other partners and stakeholders that we currently have right now, we will continue to pursue our goal of creating a financially inclusive and poverty-free Philippines,” Alip said.