Philippines’ Landbank, UCPB to merge

Post-merger, the bank will have $55.4b in combined assets, reports local media.

Philippine government-controlled lender Landbank of the Philippines is merging with the United Coconut Planters Bank (UCPB), with Landbank as the surviving entity.

Under Executive Order No. 142, Philippine President Rodrigo Duterte ordered the two banks to enter into a merger applicable to government-owned and controlled corporations and recognized by regulatory agencies.

Post-merger, Landbank will have about $55.4b (PHP2.7t) in combined assets, according to local media reports.

In a statement, Landbank President and CEO Cecilia Borromeo said that the merger will promote unprecedented rural development, in keeping with the president’s goal of expanding financial inclusion amongst Filipinos, especially those in the countryside who belong to the underserved and unbanked sectors.

“With the merged resources of Landbank and UCPB, we can bring closer to the farmers our services, as we are able to tap a combined total of 722 branches and servicing units, including those in the provinces,” Borromeo said.

Borromeo assured that the merger will mean “better financial services for UCPB clients, especially those who are in the farm sector.”

“For the clients of both banks, the merger will mean they can now rely on a stronger and better capitalized institution with solid government support,” she added.