CitySavings completes merger with PR Savings Bank

MANILA, Philippines — City Savings Bank Inc., the thrift banking arm of Aboitiz-led Union Bank of the Philippines, has merged with Philippine Resources Savings Banking Corp. (PR Savings Bank) after getting the green light from the Bangko Sentral ng Pilipinas (BSP).

CitySavings president and chief executive officer Lorenzo Ocampo said the merger would allow the country’ sixth largest thrift bank to dip its hand into motorcycle financing.

 “Merging with PR Savings enables us to diversify into the burgeoning market of motorcycle financing. Expanding our physical network and capitalizing on our operational efficiency will allow us to bring the CitySavings experience of superior customer service to more Filipinos,” Ocampo said.

Cebu-based CitySavings provides a range of mass market financial products and services, including salary loans to public and private school teachers, pension loans to pensioners of the Government Service Insurance System and Social Security System, seafarer loans, and traditional deposit products. It has 115 offices nationwide.

On the other hand, Isabela-based PR Savings Bank is the 15th largest thrift bank in terms of assets and has 102 offices. It 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.

 “Our mission has always been to unlock the economic potential in our communities, be they in the cities or in the countryside, by delivering financial services to our unbanked and underbanked countrymen,” PR Savings Bank president and CEO Catalino Abacan said.

Although the name PR Savings Bank will cease to exist after this merger, Abacan said CitySavings would continue to embrace the commitment of PR Savings Bank.

CitySavings entered into an agreement with the Ropali Group to acquire its 127.72 million shares equivalent to 66.27 percent stake in PR Savings Bank worth over P6 billion last year.

The merger is expected to create the country’s fourth largest thrift bank in terms of assets next to BPI Family Savings Bank, Philippine Savings Bank and RCBC Savings Bank, and the third largest bank in terms of capital next to BPI Family Savings Bank and PSBank.

The merger is in line with the BSP’s efforts to improve financial inclusion in the country and strengthen the banking industry through mergers and consolidation.