|ROBINSONS BANK CORP.
December 27, 2012
Robinsons Bank Corp. announced that the Monetary Board approved its acquisition of Legazpi Savings Bank (LSB) last December 26, 2012. Robinsons Bank will own a substantial controlling interest in the said entity and will retain LSB as its thrift bank subsidiary.
The acquisition falls under the Strengthening Program for Rural Banks Plus (SPRB+) of the Bangko Sentral ng Pilipinas (BSP). Parent Robinsons Bank apparently got branch licenses in restricted areas as part of the deal, but cannot disclose how many.
Robinsons Bank Corp. plans to utilize the capacity and branch network of Legazpi Savings Bank as its vehicle to engage in countryside banking and microfinance lending. Robinsons Bank Corp. President, Reynold Y. Gerongay, stated that "We are very pleased to be given this opportunity to strengthen and expand our banking activities in Bicol and are committed to the continued growth of Legazpi Savings Bank.”
For his part, the former owners of Legazpi Savings Bank represented by Congressman Al Francis C. Bichara said “We highly welcome this investment by Robinsons Bank. It is good to know that Legaspi Savings Bank will now be part of a big conglomerate to the benefit of businesses and people in Albay as well as neighboring provinces in the Bicol region.”
JG Summit Holdings, Inc. President and Chief Operating Officer Lance Y. Gokongwei said that "Robinsons Bank’s investment in Legazpi Savings Bank is part of our plans to reach out to a wider market. Robinsons Bank Corp. and JG Summit Holdings are always on the look out for viable opportunities for growth, and this investment shows our commitment to being a strategic player in the industry."
LSB has 11 branches in the Bicol Region, way up from Daet, Camarines Norte down to Sorsogon. It also has branches in Virac, Catanduanes and Masbate. LSB has more than P2 billion of assets and has a good portfolio of high yielding consumer/microfinance loans.