BSP approves acquisition of Laguna rural bank by PBCom

MANILA, Philippines - The Bangko Sentral ng PIlipinas has approved the Philippine Bank of Communications’ (PBCom) acquisition of Laguna-based Rural Bank of Nagcarlan Inc.

 “We are committed to strengthening our franchise in the SME (small and medium enterprises) banking space, and our acquisitions of these rural banks are key elements of our strategy,” president and CEO Nina D. Aguas said in a statement.

“By allowing us to reach markets that are currently underserved, building our presence in the country side will not only allow us to expand our network; but will also enable PBCom to contribute to the development and strengthening of small businesses, which comprise a significant portion of the underbanked universe,” Aguas said.

Rural Bank of Nagcarlan has six branches located in Nagcarlan, Los Banos, Calamba, Binan, Cabuyao and San Pablo.

Along with the BSP approval came the grant for licenses for 13 PBCom branches, six Rural Bank of Nagcarlan branches, and six Rural Bank of Nagcarlan other banking offices.

The agreement for the acquisition of the Rural Bank of Nagcarlan was signed in March 2014. It was the first of two rural banks recently acquired by PBCom.

PBCom also signed an agreement to acquire a controlling stake in Banco Dipolog Inc., a 13-branch rural bank in Northern Zamboanga.

Earlier in July, Puregold owner Lucio Co bought a 37.67-percent stake in PBCom for P5.98 billion, subject to regulatory approvals.

PBCom’s net income fell 95 percent to P37.38 million in the first quarter from P714.80 million in the same period last year. Total operating income of the bank declined 45 percent to P769.62 million, while total expenses went up five percent to P657.61 million.