JG Summit buys ABN Amro Savings

JG Summit’s banking unit, Robinsons Bank, has bought ABN Amro Savings Bank (AASB), making it the Philippines’ seventh-largest thrift bank with assets of P7 billion.

Lance Gokongwei, JG Summit president and Robinsons Bank chairman, did not disclose the acquisition cost but said the purchase came with AASB’s 20 branches. Robinsons Bank already has seven and would open five more shortly for a total of 32.

He said Robinsons Bank registered a net income of P74 million last year for an industry-high return on equity of almost 12 percent. Its asset quality is among the highest, defined by a 2.5-percent non-performing loan portfolio, one of the industry’s lowest.

Robinsons Bank now handles the domestic banking requirements of the JG Summit group after the conglomerate sold its controlling interest in two profitable and stable universal banks at the time: Far East Bank and PCIBank.

The acquisition is the latest move of JG Summit to expand its subsidiaries. It is into the airline, telecommunications, petrochemical, food, textile, and property development and retailing, and shopping mall businesses.

Recently, its Cebu Pacific Air acquired two Boeing 757s for its regional flights initially to Hong Kong and Seoul. It plans to fly to move Asian destinations this year.

In the coming months, Digital Telecommunications Philippines will launch its Digitel GSM mobile phone business which now has in place the most modern wireless network in the country. The launch alone will cost P13.5 billion. JG Summit will continue to invest more in Digitel GSM to ensure quality service, including nationwide coverage in its first year of operation, Gokongwei said.