State-run Land Bank of the Philippines is selling its subsidiary, UCPB Savings Bank, Inc., to focus on its core sectors.
In a statement, Landbank said the state-owned lender wants to enhance its services to key development sectors once the privatization of UCPB Savings is completed.
Lynette V. Ortiz, Landbank president and chief executive officer, said this strategic move, approved by President Ferdinand R. Marcos Jr., aims to streamline resources and optimize capital deployment.
Ortiz added that the privatization is a step towards improving UCPB Savings' operational efficiency and service quality.
"This transition will optimize resource allocation and support Landbank’s mission of inclusive development, consistent with the national government's broader efforts to streamline operations,” she said.
The privatization of UCPB-SB is part of the government's plan to rationalize resources and enhance operational efficiency.
By divesting its ownership stake in the savings bank, Landbank can concentrate on serving its mandated and priority sectors, such as agriculture, rural development, and social welfare, the bank said,
Landbank is now seeking qualified private parties to acquire its 97.55 percent ownership share in UCPB-SB.
For 2025, the Marcos administration is poised to launch the largest privatization program in history.
Based on the proposed budget for next year, President Marcos aims to raise P101.01 billion in revenues through the sale of government assets in 2025.
Next year’s privatization target is more than double the goal of P42.12 billion set for this year.
If achieved, the 2025 privatization effort will be the largest in Philippine history, surpassing the current record of P90.62 billion proceeds generated in 2007, data from the Bureau of the Treasury showed.