PBCom acquires Consumer Savings

The Philippine Bank of Communications (PBCom) has strengthened its position in the banking industry with the acquisition of Consumer Savings Bank from RFM Corp. for P511.5 million.

In a disclosure to the Philippine Stock Exchange, PBCom president and CEO Isidro Alcantara Jr. said the bank’s board of directors had approved the purchase of 100 percent of the outstanding capital stock of Consumer Savings Bank, subject to the approval of its shareholders and the regulatory authorities like the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission.

Consumer Savings has a network of about 20 branches scattered in the metropolis and nearby provinces and has built up a reputation as a financing source for small businessmen and entrepreneurs.

In its three years of operation, the bank has received major citations and awards among which are the Most Outstanding Thrift Bank for Agricultural Loan Fund in 1998 given by Land Bank and the Most Distinguished Partner in 1999 and 2000 by the Small Business Guarantee and Finance Corp.

It is 68-percent owned by RFM Equities Inc., a full subsidiary of RFM Corp., along with several minority groups and individuals.

RFM president and CEO Jose Concepcion III said the sale of RFM‘s equity is in line with its strategic direction to "focus RFM into its core food and beverage business." The conglomerate is concentrating on its food and beverage units such as Swift Food, Cosmos Bottling and Selecta Dairy Products.

"The bank has sustained a very healthy balance sheet, despite the challenges in the macro-environment and has consistently registered profits from day one," Concepcion added. – Conrado Diaz Jr.