The P2.9-trillion merger of government-controlled Land Bank of the Philippines (Landbank) and United Coconut Planters Bank (UCPB) is a done deal by March 1.
Landbank President and CEO Cecilia C. Borromeo said on Monday, Feb. 28, that the merger of the two banks will enable the surviving entity to have the capital and resources to fund agriculture and rural development.
Borromeo said the “union with UCPB advances the government’s development agenda to support the agriculture sector through a stronger, more resilient and unified banking institution.” As the surviving entity, Landbank’s total assets will expand to P2.9 trillion. The state-owned bank is the second largest lender in the Philippines after BDO Unibank Inc. of the SM Group.
“The merger places us in a better position to reach and service more farmers, fishers and other players in the agribusiness value chain nationwide,” said Borromeo.
The merger increases Landbank’s branches to 677 with 2,800 automated teller machines and 228 cash deposit machines nationwide.
Landbank said all UCPB branches will continue to operate and serve UCPB customers until the systems integration and accounts migration to Landbank are completed. “The majority of UCPB branches will be converted as (Landbank) branches and will be announced regularly to the public,” it added.
However, since accounts are yet to be converted or migrated from UCPB to Landbank, existing service fees for cash withdrawals will still apply for UCPB cardholders transacting at Landbank ATMs.
The presidential Executive Order No. 142, signed on June 25, 2021, ordered the merger of Landbank and UCPB to “form a better capitalized and more resilient institution that will play a principal role in the National Government’s development and financial inclusion agenda,” said Landbank.