Philippines: New Landbank – UCPB merger to take effect from March 1, 2022

Landbank is the official depository bank of the country’s central government

Philippines: New Landbank – UCPB merger to take effect from March 1, 2022

Philippines: New Landbank – UCPB merger to take effect from March 1, 2022

Landbank (Land Bank of the Philippines) and the United Coconut Planters Bank (UCPB) have fabricated the second-biggest lender, through a merger, with assets estimated at PHP 3 trillion (USD 0.059 trillion).

The merger will take effect from March 1, 2022. Landbank is the predominant brand.

In a public statement revealed late Tuesday evening on Landbank’s official Twitter account, Landbank stated that UCPB stakeholders had authenticated the merger with Landbank. In addition, regional media houses reported that over 97% of UCPB stakeholders voted in favour of the merger strategy and articles.

“Notice to the public on the merger of the Land Bank of the Philippines (Landbank) and the United Coconut Planters Bank.”

  • @LBP_Official, Landbank’s official Twitter account

Landbank is the official depository bank of the country’s central government. The UCPB facilitated agricultural development and benefitted the coconut farmers in the Philippines. The services of both banks will remain unaffected during the process of the merger’s execution.

The endeavour arrived after President Rodrigo Duterte issued Executive Order #142 and the merger’s authorisation by the Governance Commission for Government-possessed and managed corporations. The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) also approved the merger alongside the Philippine Deposit Insurance Corporation and the Philippine Securities and Exchange Commission.

Landbank – UCPB merger assets

As of September 2021, Landbank’s net revenue surged by 21% to PHP 16.72 billion (USD 0.33 billion) from PHP 13.8 billion (USD 0.27 billion) in 2020. The firm’s assets expanded by 14% to PHP 2.56 trillion (USD 0.050 trillion).

Capital managed by the state-possessed bank was also augmented by 26% to PHP 208.17 billion (USD 4.08 billion) from PHP 165.52 billion (USD 3.24 billion).

Parallelly, the state-possessed bank has adhered with a commitment to the provisions of the Agri-Agra Reform Credit Reform Act (2009). As a result, in 2021, the bank’s portfolio of loans for the agriculture industry peaked at 76.95%, whilst agrarian reform beneficiaries accomplished 11.52%.

UCPB is bound to profit from Landbank’s fiscal muscle.

The state-possessed bank witnessed its agricultural lending mature from PHP 222.05 billion (USD 4.35 billion) in 2018 to PHP 236.31 billion (USD 4.63 billion) in 2019, and PHP 237.62 billion (USD 4.66 billion) in 2020.

President Rodrigo Duterte’s Executive Order #142

The merger came after President Rodrigo Duterte issued Executive Order #142 on June 25, 2021. The order authenticated the move to fabricate a colossally capitalised and resilient entity.

Landbank also possesses the Overseas Filipino Bank (OFBank), the Philippines’ foremost digital-only bank licensed by the central bank.

Easy Accessibility

The merger will assist in easing accessibility to branches and ATM networks for consumers. The combined institution will operate via 667 branches and 2,722 ATMs in the Philippines.

Cecilia Borromeo, Landbank’s President and CEO, stated that the merged institutions would witness augmented products and services to serve the government’s aim of financial inclusion.

Borromeo indicated that the bank could captivate the fiscal impact of the take-over of UCPB. She stated that the inclusion of UCPB’s assets and liabilities to Landbank will also surge the surviving institution’s loans, capital, and deposits.

In a media statement, Borromeo said that with the OCPB merger, the bank was seeking a stronger, more robust, and unified banking entity that would enhance and broaden financial inclusion in the Philippines. In addition, the bank’s goal was to specifically serve the population that belonged to the underserved and unbanked factions of the Philippine society.

Exit mobile version