MANILA, Philippines – Union Bank of the Philippines, Inc. (PSE:UBP) discloses that its wholly-owned subsidiaries, City Savings Bank, Inc. and Union Properties, Inc., acquired First-Agro Industrial Rural Bank, Inc.
In a disclosure to the Philippine Stock Exchange filed on behalf by Joselito Banaag, Union Bank Senior Vice President/ Corporate Secretary, the financial firm confirms that it has obtained the approval of the monetary board in finalizing the acquisition of the First-Agro Industrial Rural Bank.
The wholly-owned arms of Union Bank reported the sanction given to them in entering a partnership deal to own First-Agro Industrial Rural Bank’s major stake. Through the selloff, Union Bank would be able to initiate its rural and microfinancing banking sector.
Eugene S. Acevedo, Union Bank Senior Executive Vice President and City Savings Board Chairman, stated that the management is exalted by the recent acquirement of First-Agro interests for the deal serves as a stepping stone in catering to the Filipinos who have no bank accounts yet. He further stated that they are appreciative of the First-Agro founding owners, particularly for the trust given in continuing their microfinance mission.
First-Agro Industrial Rural Bank would sustain its separate structure, organization, company name, and brand identity even following the acquisition. It would still be a dependable partner of Union Bank for a brighter future.
Dinah Fernan-Verallo, First-Agro Industrial Rural Bank CEO and Chairman, stated that from the beginning, the financial bank has always been geared for microfinance community’s service. Through the joint venture, they would be able to reach unbanked communities in the Visayas and other national areas. Moreover, the recent buyout would improve their persistent determination and welcome new opportunities. She further stated that conclusively, they are thrilled over the agreement and looking forward to the future.
First-Agro Industrial Rural Bank was established in 1999. At present, it has over P360 million total resources and more than 200 employees. The financial firm also has a base of depositors exceeding the 20,000 level, and over 10,000 borrowers.
City Savings is a thrift financial arm of Union Bank, whereas Union Properties is more focused on real properties and buildings, which are partly- and wholly-owned by Union Bank.
Union Bank of the Philippines was incorporated on August 16, 1968, and became a universal financial firm in the country. The bank delivers an array of retail, corporate, and commercial banking products and services. Union Bank’s products include trust and fund management, deposit and related services’ auto loans, credit card, and consumer finance loans among others.