Central bank okays AUB takeover of Asiatrust

MANILA, Philippines—Asia United Bank has obtained approval from the Bangko Sentral ng Pilipinas to take over the 28-branch thrift bank Asiatrust Development Bank.

The policy-making Monetary Board of the BSP approved the transaction during its meeting on Thursday.

“The acquisition is in line with our aspiration to make AUB a stronger and more formidable banking industry player as we create synergies with Asiatrust,” said AUB president Abraham Co.

Under the transaction, the 15-year-old AUB bought the banking assets and will assume the banking liabilities of Asiatrust.  It will increase the total resources of AUB, a medium-sized commercial bank, by more than P4 billion and expand its nationwide network to 102 branches.

This transaction would be AUB’s third acquisition in three years counting one that still BSP approval. In 2009, AUB took over Rural Bank of Angeles, which had four branches and two satellite offices in Pampanga, boosting its presence outside Metro Manila. AUB’s acquisition of the Cooperative Bank of Cavite is awaiting BSP approval.

As of end-2011, AUB has assets of P50 billion and capitalization of P9 billion. Its return-on-equity ratio is 12 percent, ranking it among the most profitable commercial banks in the country.

AUB is owned by a group of Filipino, Taiwanese and Singaporean investors engaged in property development, manufacturing, and other equity ventures. Republic Biscuit Corporation (Rebisco), the Philippines’ leading manufacturer, distributor, and exporter of snack food products for the past 49 years, is the bank’s biggest shareholder.