City Savings Bank, Inc. (CitySavings), the thrift banking arm of Union Bank of the Philippines (UnionBank), has signed a Share Purchase Agreement (SPA) with the ROPALI Group to acquire 100% of the common shares of Philippine Resources Savings Bank (PR Savings).
This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country.
– Edwin Bautista, President and CEO, UnionBank
The SPA was signed by ROPALI Group Chairman and founder Roberto Alingog and City Savings Bank Chairman and UnionBank Senior Executive Vice President Eugene Acevedo.
The transaction is subject to closing conditions and regulatory approval, targeted by the 2nd quarter 2018.
PR Savings Bank is a member of the Ropali Group of Companies, a mid-sized conglomerate that is a leading player in the motorcycle and agricultural machinery trade. The Isabela-based bank is the 14th largest thrift bank in the country, with assets of Php 12.917 billion. It has 102 offices, mostly in Luzon. The bank is presently engaged in extending motorcycle, agri-machinery, and teachers’ salary loans, serving over 131,000 borrowers, mostly from the mass market segment.
The acquisition represents exciting new opportunities for CitySavings to substantially expand its reach in Luzon, as well as enter new market segments such as motorcycle and agri-machinery financing. This is also in line with the Bangko Sentral ng Pilipinas’ (BSP) efforts to improve financial inclusion in the country and strengthen the banking industry through mergers and consolidation. Through the acquisition, CitySavings significantly contributes to the Aboitiz Group’s promise of advancing business and communities by extending its services to more sectors of the Philippine society.
About CitySavings
City Savings Bank, Inc. is the 5th largest thrift bank in the country in terms of assets, with Php 74.444 billion as of June 30, 2017.
It provides a range of mass market finance products and services, such as salary loans to public and private school teachers, pension loans to GSIS and SSS pensioners, OFW loans, and traditional deposit products.
CitySavings has 106 offices across the country, from 65 in 2014.