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GSIS Family Savings Bank plans to acquire a medium-sized lender to
expand its operation in the medium term.
A source said GSIS Family Savings is interested
in buying Philippine Postal Bank to boost its assets and support the
banking requirements of state-run Government Service Insurance
System (GSIS).
Based on its statement of condition, Philippine
Postal Bank’s resources stood at P2.888 billion in October 2004.
Among its mandate is to provide financial support to small farmers
and other agri-ventures, as well as engage in the general business
of savings and mortgage banking.
“Our plan is to acquire a mid-size bank within
the next two to three years,” Winston F. Garcia, GSIS president
and general manager, said, without naming the pension fund’s
planned acquisition.
“I cannot disclose just yet. But, this early,
we are scouting for [a] possible acquisition,” he said, adding the
bank has a capital adequacy ratio of 18 percent. Through the merger,
GSIS Family Savings can push for an upgrade in its status from a
thrift bank to a commercial lender. This is part of the incentives
GSIS Family Savings acquired upon its rehabilitation.
The bank’s management will request for another
extension from the Bangko Sentral ng Pilipinas (BSP) of all the
incentives the lender failed to use when the perks lapsed in July
last year.
With the commercial bank license, GSIS Family
Savings can service the payroll needs and the payment of benefits of
more than a million GSIS members and retirees.
To boost consumer lending, GSIS Family Savings
has applied for a foreign currency deposit unit (FCDU) license,
Reynaldo Palmiery, GSIS Family Savings president, said.
This will also help the bank widen its
remittance services. The thrift lender recently partnered with
PetNet Inc. to use its infrastructure and reach overseas Filipino
beneficiaries outside Metro Manila.
“Aside from the FCDU license, we are also
going to apply for a license upgrade to commercial bank. This will
be our next step,” Palmiery said.
GSIS Family Savings has a branch network of 22,
of which 11 are in Cavite, eight in Metro Manila, two in Laguna and
one in Bulacan.
Palmiery said the bank could grow its net income
by 15 percent this year from its consumer and small and medium
enterprise (SME) lending.
-- Maricel E. Burgonio
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