City Savings Bank merges with PR Savings

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has approved in principle the merger between Aboitiz-owned City Savings Bank and Isabela-based Philippine Resources Savings Bank.

Union Bank of the Philippines said in a disclosure it has received a letter from the BSP dated June 19 approving the equity investment of wholly owned City Savings and PR Savings Bank as well as the approval of the two savings banks.

City Savings Bank entered into an agreement with the Ropali Group to acquire its 127.72 million shares equivalent to 66.27 percent stake in PR Savings Bank worth over P6 billion.

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 merger would create the country’s fourth largest thrift bank in terms of assets next to BPI Family Savings Bank, Philippine Savings Bank and RCBC Savings Bank.

The transaction would also create the third largest bank in terms of capital next to BPI Family Savings Bank and PSBank.

City Savings Bank is the country’s sixth largest thrift bank in terms of assets with P77.48 billion in end 2017, while PR Savings Bank is ranked 15th with P13.02 billion.      

In terms of capital, City Savings Bank is ranked third with P13.74 billion while PR Savings Bank is ranked 12th with P2.37 billion.