Retail magnate Lucio Co-led Philippine Bank of Communications (PBCom) signed a deal to sell its rural bank arm to Producers Savings Bank, a stand-alone thrift bank that has been acquiring smaller players.
PBCom agreed to sell its 99.98-percent stake in PBCom Rural Bank for P555.8 million, the bank disclosed to the Philippine Stock Exchange.
“The move was meant to consolidate the efforts and resources at PBCom level, which has set as its strategy to focus on its core businesses and expand market to the ecosystem of its principals,” the bank said.
PBCom has reported first quarter 2019 net income of P382.6 million, a 116-percent increase year-on-year, as a result of strong interest and noninterest income.
Producers Bank is a small and medium enterprise-focused bank that has been a consolidator of rural banks. Before PBCom Rural Bank, it has previously acquired 17 other banking players. The most recent acquisitions were: Rural Bank of Pamplona (Camarines Sur) Inc., Rural Bank of President Quirino (Sultan Kudarat) Inc., Bangko Rural ng Pasacao (Camarines Sur) Inc., Bangko Rural ng Magarao (Camarines Sur) Inc., Rural Bank of San Fernando (Camarines Sur) Inc., Rural Bank of Barotac Nuevo Inc., Rural Bank of Sibalom (Antique) Inc. and Rural Bank of San Quintin (Pangasinan).
This savings bank aims to build a distribution network of 300 branches by 2020. —DORIS DUMLAO-ABADILLA