The MERGER of Philippine Business Bank (PBB) and Insular Savers Bank, Inc. (A Rural Bank) (ISBI) has been completed as it was approved by the Securities and Exchange Commission (SEC) on June 10, 2019 following the central bank’s Monetary Board approval of the transaction on December 18, 2018.
In a disclosure to the Philippine Stock Exchange, PBB said its Board of Directors approved the acquisition of all outstanding shares of ISBI with an agreed purchase price of P575.0 million to accelerate the Bank’s entry into the high-yielding consumer finance business.
The merger of both banks will add approximately 10% to PBB’s bottom line. This transaction gives PBB an opportunity to further strengthen its consumer lending business while establishing a foothold in microfinance market.
PBB plans to use ISBI’s existing teacher’s loan license and offer the “Makaguro Loan” to its clients through select PBB branches nationwide. The Bank will also offer ISBI's existing products such as microfinance, second-hand auto loans, and group salary loans.
ISBI has 10 branches: Bonifacio Global City, Cainta, Pampanga, Baliuag, Calamba, Quezon Avenue, Navotas, Makati City, Iloilo and Legazpi, adding up to PBB’s 147 branches nationwide.