Yao group-led thrift bank Philippine Business Bank (PBB) has obtained approval from the Bangko Sentral ng Pilipinas to merge with rural bank Insular Savers Bank Inc. (ISBI), with the former as the surviving bank.
To recall, PBB announced the acquisition of ISBI, the rural banking arm of the Martirez family, in 2015. The earlier agreed price was P519.2 million for 100 percent of ISBI but based on a disclosure to the Philippine Stock Exchange on Monday, PBB’s board approved the acquisition for P575 million.
The deal is seen to accelerate PBB’s entry into the high-yielding consumer finance business.
The merger of the two banks will add an estimated 10 percent to PBB’s bottom line, the disclosure said.
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“This transaction gives PBB an opportunity to further strengthen its consumer lending business while establishing a foothold in microfinance market,” the disclosure said.
PBB plans to use ISBI’s existing teacher’s loan license and offer the “Makaguro Loan” to its clients through select PBB branches nationwide.
