SEC approves merger of PBB, Insular Savers
Lawrence Agcaoili (The Philippine Star) - June 13, 2019 - 12:00am

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the merger of Philippine Business Bank Inc. (PBB) and Insular Savers Bank Inc. (ISBI).

Under the planned merger, which was earlier approved by the Bangko Sentral ng Pilipinas (BSP), PBB chairman Alfredo Yao would absorb the entire assets and liabilities of ISBI, allowing it to further strengthen its consumer lending business, while establishing a foothold in the microfinance market.

PBB plans to use ISBI’s existing teacher’s loan license and offer the “Makaguro Loan” to its clients through select PBB branches nationwide.

The merger is expected to add approximately 10 percent to PBB’s bottom line. The board of directors of PBB approved the acquisition of all outstanding shares of ISBI with an agreed purchase price of P575 million to accelerate the bank’s entry into the consumer finance business.

Earnings of PBB jumped by 38.5 percent to P251 million in the first quarter of the year from P181.3 million in the same quarter last year. Its loan book inched up four percent to P76.8 billion from P73.9 billion, while its deposit base went up by 6.3 percent to P78.7 billion from P74 billion.

Its total assets stood at P94.7 billion as of end-March, 7.1 percent higher than the P88.4 billion booked in end-March last year.

ISBI is a rural bank providing services such as deposit-taking, loans and trade financing and microfinancing. It was authorized to engage in the business of extending credit to small farmers and tenants and to rural industries or enterprises.

It acquired Filipino Savers Bank in 2012 to gain a foothold in the salary loans business and has opened channels to offer salary loans to public school teachers.

The rural bank has 10 branches: Bonifacio Global City, Cainta, Pampanga, Baliuag, Calamba, Quezon Avenue, Navotas, Makati City, Iloilo and Legazpi.

ISBI’s net loans and receivables amounted to P1.247 billion while its deposit portfolio and shareholder’s equity reached P1.008 billion and P667.2 million, respectively, as of October 2018.

SECURITIES AND EXCHANGE COMMISSION
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