United Coconut Planters Bank said Friday shareholders approved the planned merger with Land Bank of the Philippines, paving the way for the fusion of the two government-controlled banks into a unified and stronger financial institution.
UCPB said in a statement shareholders representing 97.2 percent of the total outstanding capital stock of UCPB voted in favor of the merger during the stockholders’ meeting on Dec. 14.
As the surviving entity of the merger, LandBank’s total assets will grow to nearly P3.0 trillion, further solidifying its position as the country’s second-largest bank in terms of assets.
“With this merger, we are looking forward to a stronger, more resilient and unified banking institution that will promote and broaden financial inclusion among Filipinos, especially those who belong to the underserved and unbanked sectors,” LandBank president and chief executive Cecilia Borromeo said.
LandBank said it is more than capable of absorbing the financial impact of the merger with UCPB, as its assets and liabilities would expand total deposits, loans and capital.
LandBank assured customers of both banks that deposits would remain intact and secured in servicing branches, as banking services will continue to be unhampered and uninterrupted, while ensuring that the rights of all shareholders are upheld and protected.
The merger of the two banks is pursuant to Executive Order 142 signed by President Rodrigo Duterte on June 25, 2021, which approved the merger to form a better capitalized and more resilient institution that would play a principal role in the national government’s development and financial inclusion agenda.
LandBank’s net income grew by 21.2 percent in the first three quarters to P16.72 billion from P13.8 billion in the same period last year, raising total assets by 13.6 percent to P2.564 trillion from P2.257 trillion. Capital also rose 25.77 percent to P208.17 billion from P165.52 billion.
The bank consistently complied with the Agri-Agra Law, with agriculture loans reaching 76.95 percent of its total lending portfolio and 11.52 percent for agrarian reform credit as of December 2020.
LandBank said coconut farmers and other workers in the agricultural sector stand to benefit most from its enhanced financial muscle, as evidenced by its consistently growing agriculture lending from P222.05 billion in 2018, to P236.31 billion in 2019 and P237.62 billion in 2020.
Customers of LandBank and UCPB will also gain access to a wider branch and ATM network, with a combined 667 branches and 2,722 ATMs nationwide, and benefit from a wider range of products and services.