Bank merger okayed by BSP

Business World

BY ANN ROZAINNE R. GREGORIO

THE CENTRAL BANK has approved the merger of Robinsons Savings Bank, the banking arm of Gokongwei-led JG Summit Holdings, Inc., and Robinsons Bank Corp., formerly known as the Royal Bank of Scotland (Philippines) Inc.

"The Monetary Board approved the merger of Robinsons Savings Bank and Robinsons Bank Corp. in a meeting last Dec. 9," Robinsons Savings compliance officer Danny E. Bunyi told BusinessWorld.

"Currently, Robinsons Savings Bank is waiting for the certificate of authority to be issued by the Centralized Application and Licensing Group of the Bangko Sentral ng Pilipinas to file the Plan of the Merger and the Articles of the Merger of the two banks with the Securities and Exchange Commission," he added.

Central Deputy Governor Nestor A. Espenilla, Jr. confirmed the approval in an e-mail.

"Yes, [the] Monetary Board’s approval [has been] granted," he told BusinessWorld.

Robinsons Bank, having a commercial banking license, will be the surviving entity, officials said. Robinsons Savings holds a thrift bank license.

The merger, once finalized, would make Robinsons Bank the 14th largest commercial bank with assets totalling P24 billion and a combined net income of P300 million this year.

"The merged bank will have a higher level of equity allowing it to further grow its loan portfolio," corporate planning head Mykel D. Abad said in a separate e-mail to BusinessWorld.

Asked about post-merger directions, Mr. Abad said "we will acquire other bank branches and purchase existing loan portfolios. We are also instructed to grow consumer and commercial loans with a 60/40 [division favoring] the consumer loans."

JG Summit Holdings, Inc., bought the Royal Bank of Scotland (Philippines) Inc. from Royal Bank of Scotland Group Plc and the Royal Bank of Scotland N.V. through a share-swap agreement last Feb. 24.

JG Summit Holdings, Inc. closed at P21.20 apiece yesterday, 40 centavos up from its P20.80 close last Thursday.