PHILIPPINE Business Bank (PBB), a listed savings bank, has acquired rural bank Insular Savers Bank for P518.2 million in a bid to grow the bank’s asset and revenues.
In a disclosure to the Philippine Stock Exchange, the bank said its board of directors approved the acquisition of 100 percent of Insular Savers, which is expected to be merged into PBB.
“The acquisition is to be able to further enhance asset and revenue growth, and the eight branches it has in restricted areas – in parts of Makati and Quezon City – will add on to our branch network,” Rolando Avante, PBB president and chief executive officer, said in a phone interview.
“We will fully consolidate Insular Savings into the bank,” he added.
Avante said additional eight branches in PBB will raise the total network of the bank to 133, which is still subject to regulatory approvals. He said the transaction will be funded by internal funds, without the need to raise capital.
He said the bank looks at acquisition “always as an option” to expand PBB in the next few years.
Incorporated in 1997, PBB is owned by former ambassador Alfredo Yao. It caters mostly to small and medium enterprises. The bank aims to reach 140 branches this year.