The Bangko Sentral ng Pilipinas (BSP) has given its go signal to Robinsons Bank Corp. to acquire Legazpi Savings Bank (LSB), a privately owned bank that has 11 branches in Bicol, way up   from Daet, Camarines Norte down to Sorsogon.

The acquisition falls under the Strengthening Program for Rural Banks Plus (SPRB+) of the BSP.
According to Robinsons Bank, it plans to utilize the capacity and branch network of LSB as its vehicle to engage in countryside banking and microfinance lending.

Robinsons Bank will now own a substantial controlling interest in the bank and will retain LSB as its thrift bank subsidiary.

Former owners of Legaspi Savings Bank, represented by Rep. Al Francis Bichara of the third district of Albay, said that they highly welcome the investment by Robinsons Bank.

“It is good to know that Legaspi Savings Bank will now be part of a big conglomerate to the benefit of businesses and people in Albay, as well as neighboring provinces in the Bicol region,” he added.

JG Summit Holdings Inc. President and Chief Operating Officer Lance Gokongwei, said that Robinsons Bank’s investment in LSB is part of the conglomerate’s plan to reach out to a wider market.

“Robinsons Bank Corp. and JG Summit Holdings are always on the look out for viable opportunities for growth, and this investment shows our commitment to being a strategic player in the industry,” he said.

Robinsons Bank apparently got branch licenses in restricted areas as part of the deal, but declined to disclose the number of branches.  

LSB, with other branches in Virac, Catanduanes and Masbate, has more than P2 billion in assets and has a good portfolio of high yielding consumer/microfinance loans.