The deal facilitates PBB’s entry into the microfinance space.
The merger of Philippine Business Bank (PBB) and Insular Savers Bank, Inc. (ISBI) is expected to be completed before June 20 following the full acquisition of ISBI’s outstanding shares for $11.02m (PHP575m), reports Business World.
“This transaction gives PBB an opportunity to further strengthen its consumer lending business while establishing a foothold in microfinance market,” the bank said in a statement, adding that the acquisition will bump up its bottomline by roughly 10%.
PBB is targeting to ISBI’s existing teacher’s loan license to offer the “Magkaguro Loan” to its clients in selected branches. ISBI currently operates 10 branches in Metro Manila, Rizal, Bulacan, Pampanga, Laguna, Iloilo and Albay.
The deal is still subject to the approval of the Securities and Exchange Commision.
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