The state-run Land Bank of the Philippines is aiming for a 25-percent share of the remittance business by 2022 as it opens the first so-called “Overseas Filipino Bank” in Dubai next year.
Landbank president Alex Buenaventura told reporters late Friday that the lender’s board had decided to acquire Philippine Postal Savings Bank (Postbank) at “zero value” as it has valuation of about negative P480 million.
Once the acquisition is approved by President Duterte, Landbank will infuse about P1 billion in fresh capitalization to Postbank and convert it into the Overseas Filipino Bank, Buenaventura said.
The former Postbank will “just be a remittance marketing subsidiary of Landbank to service overseas Filipino workers,” he said.
Overseas Filipino Bank will sell Landbank’s remittance products to OFWs and tap the latter’s existing remittance system, he added.
By January next year, the first Overseas Filipino Bank will be piloted in Dubai, to be housed in the consular office there, Buenaventura said.
Another branch is being eyed in Bahrain by April next year, but the full operations of both branches will likely be in 2019, Buenaventura added.
The Landbank chief said they will provide cheaper remittance rates than those of other players.
From a 5-percent share of the remittance market at present, Landbank targets to corner a fourth by 2022, according to Buenaventura.
At present, BDO Unibank Inc. is the biggest player in the remittance business with a 40-percent market share, followed by Metropolitan Bank and Trust Co., Buenaventura noted. JE