Bigger banks are expected to snap up UCPB Savings Bank which the state-run Land Bank of the Philippines (Landbank) is selling to focus on its core sectors.
Bank of Makati president Luis M. Chua noted in an interview that universal and commercial banks would "most likely" target to acquire UCPB Savings, a thrift bank like his bank.
"For once, that was part of our pipeline. Considering its size — medium, it's quite big for us [to buy]. We don't have the same business model. I also came from UCPB before, so I know the business model of UCPB — it's not aligned with Bank of Makati," Chua said on the sidelines of the Chamber of Thrift Banks' (CTB) general membership meeting on Friday, Oct. 11.
Chua, who's also CTB's treasurer and trustee, explained that merging unaligned thrift banks cannot maximize profitability and would lack synergy.
Big banks, meanwhile, usually have affiliate thrift banks, citing that Philippine Savings Bank (PSBank) is a subsidiary of Ty-led Metropolitan Bank and Trust Co. (Metrobank), Chua pointed out.
Last week, Landbank said it wants to enhance its services to key development sectors once the privatization of UCPB Savings, through the sale of its 97.55-percent stake, is completed.
Landbank president and chief executive officer (CEO) Lynette V. Ortiz had said this strategic move, approved by President Ferdinand R. Marcos Jr., aims to streamline resources and optimize capital deployment to the lender's mandated and priority sectors such as agriculture, rural development and social welfare.
Ortiz had also said privatizing UCPB Savings would improve its operational efficiency and service quality.
For its part, Ayala-led Bank of the Philippine Islands (BPI) is not interested in buying another thrift bank like UCPB Savings, its president and CEO Jose Teodoro K. Limcaoco told reporters last Thursday, Oct. 10.
"We used to have a savings bank and we merged it with BPI. We have a savings bank now called Legazpi Savings Bank, that we eventually have to figure out how to integrate that into our network," Limcaoco said.
Asked if there would be other mergers and acquisitions for BPI in the near term, Limcaoco replied: "We can never say never. But right now, nothing on my plate."
Limcaoco said BPI's integration with what used to be Robinsons Bank Corp. (RBC) is "going on really well" and will be completed next year.
BPI and RBC merged to unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and, by capitalizing on BPI's expertise and network, enhance the overall banking experience of RBC customers.
BPI shall be able to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group. (With Derco Rosal)