Union Bank's CitySavings to acquire PR Savings Bank

CEBU, Philippines — Cebu-based City Savings Bank, the thrift banking arm of listed Unionbank, is set to acquire 100 percent of the common shares of Philippine Resources Savings Bank (PR Savings) of the Ropali group.

In a disclosure to the Philippine Stock Exchange yesterday, Aboitiz-led Unionbank said its subsidiary had signed a share purchase agreement (SPA) with the Ropali to acquire the savings bank.

“This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country,” said Unionbank president and incoming CEO Edwin R. Bautista.

The SPA was signed by Ropali group chairman and founder Roberto P. Alingog and

City Savings Bank chairman and Unionbank senior executive vice president Eugene S. Acevedo.

PR Savings Bank is a member of the Ropali Group of Companies, a mid-sized conglomerate that is a leading player in the motorcycle and agricultural machinery trade.

The Isabela-based bank is the 14th largest thrift bank in the country, with assets of P12.917 billion.

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.

The acquisition represents exciting new opportunities for City Savings to substantially expand its reach in Luzon, as well as enter new market segments such as motorcycle and agri-machinery financing.

This is also in line with the Bangko Sentral ng Pilipinas’ (BSP) efforts to improve financial inclusion in the country and strengthen the banking industry through mergers and consolidation.

The transaction is subject to closing conditions and regulatory approval, targeted by the second quarter 2018.

City Savings Bank is the 5th largest thrift bank in the country in terms of assets, with P74.444 billion as of June 30, 2017.

It provides a range of mass market finance products and services, such as salary loans to public and private school teachers, pension loans to GSIS and SSS pensioners, OFW loans, and traditional deposit products.

City Savings has 106 offices across the country, from 65 in 2014.