Quantcast
Latest Stories

Union Bank taking over CitySavings Bank

By

MANILA, Philippines—Union Bank of the Philippines is set to buy 32-branch thrift bank City Savings Bank, marking a consolidation of the banking interests of the Aboitiz group.

In a joint statement, Union Bank and parent conglomerate Aboitiz Equity Ventures announced the acquisition by the former of 99.54 percent of CitySavings for about P5.7 billion.
AEV, which owns 45 percent of Union Bank, owns CitySavings together with its wholly owned subsidiary Pilmico Foods Corp.  After the acquisition, CitySavings will remain as a separate corporate entity, keeping its company name as well as its brand identity of simple and straightforward banking.

Union Bank will buy the combined 194,371 shares of AEV and Pilmico in CitySavings at 2.5 times the book value as of end-2012, subject to the results of a due diligence review.  It is also conditional to getting approval from the Bangko Sentral ng Pilipinas.

“We believe very strongly that repositioning our financial services portfolio under UnionBank is the right strategic move to optimize value and growth opportunities. We envision UnionBank and CitySavings complementing each other’s management strengths, augmenting technological capabilities, and leveraging on each other’s financial capabilities.” AEV president and chief executive officer (CEO) Erramon Aboitiz said.

For his part, UnionBank chair and CEOJusto Ortiz said: “Our acquisition of CitySavings is aligned with UnionBank’s long-term strategy of building a great retail bank. CitySavings has a business model that gives us a strategic opportunity to expand our customer franchise, and an existing management team we have full confidence in.”

Established in 1966, City Savings has more than 300 employees, a stockholders equity of more than P1 billion and total resources of more than P9 billion, based on the bank’s website. It has 99,000 borrowers and a depositors’ base of over 59,000.

CitySavings president and CEO Mikel Aboitiz said, “We are very excited about this development. Increasing our strategic cooperation with UnionBank and combining our unique strengths will enable us to not only accelerate our plans to be the preferred teacher bank nationwide but also provide the next growth leg by expanding into broader civil servant and payroll loans market segments.”


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Aboitiz group , acquisition , City Savings Bank , CitySavings , Pilmico Foods Corp. , Union Bank

  • http://pulse.yahoo.com/_PN3VRDYP7ZZDTUHWG5R7RJSXWM raul n

    union bank rip off its customer/clients who are UMID card holders of GSIS. imagine just asking for replacement or new pin code for forgotten pin code of your UMID ID the bank will charge you P350.00. whereas in other banks they will charge you only P80-100. calling GSIS president please make mandatory to all GSIS members to migrate to LBP UMID card. i have observed a lot of pensioners/seniors citizens are victim of this scheme of Unionbank. MR. VERGARA please take note of this.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Aquino: ‘Doubting Thomases’ now contributing to PH recovery
  • Fire engulfs apartments in Sampaloc
  • Messy warehouse belongs to Unicef, WFP, says Soliman
  • Suspected Abu Sayyaf rebels release hostage
  • New meaning of Easter in Samar
  • Sports

  • Warriors beat Clippers in playoff opener
  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace