MANILA, Philippines - Asia United Bank (AUB) has fully integrated the 28-branch network of Asiatrust Development Bank Inc. located mostly within Metro Manila, a top bank official said.
AUB first vice president Andrew T. Yap said all Asiatrust branches have been fully integrated and are now operating as AUB branches, bringing its total branch network to 102 nationwide.
Majority of the Asiatrust branches are located within the so-called restricted areas in Metro Manila, with a pool of bank personnel that are talented and experts in their field, he pointed out.
Asiatrust specialized in the small and medium enterprises (SME) market, the same area AUB has been strengthening as part of its retail and consumer portfolio.
“The network is good, and the franchise can be developed to suit AUB’s targets,” Yap added.
As part of the agreement to acquire Asiatrust, the thrift bank license will be surrendered to the Bangko Sentral ng Pilipinas (BSP).
Asiatrust, a listed company, informed the Philippine Stock Exchange (PSE) yesterday that all its branches have stopped operating, and that it will “operate as Asia United Bank’s branches.”
“The permanent closure and cessation of Asiatrust’s banking operations is pursuance to an asset sale and purchase agreement executed by and between Asiatrust and AUB in February 2012,” it said in its report.
AUB is a medium-sized commercial bank, with total assets worth P50 billion and capital funds of over P9 billion at the end of 2011. Its return-on-equity ratio is at 12 percent, ranking it among the most profitable commercial banks in the country.
Asiatrust was a thrift bank with deposits worth P6 billion, serving 25,000 individual and corporate customers.
AUB has been in a selective acquisition mode since 2009. It took over Rural Bank of Angeles, which has four branches and two satellite offices in Pampanga, boosting its presence outside Metro Manila. Its acquisition of the Cooperative Bank of Cavite is awaiting BSP approval.
AUB is owned by a consortium of Filipino industrialists, Taiwanese investment banks and Singapore venture capitalists. Its majority stakeholder is Republic Biscuit Corp. (Rebisco), the Philippines’ leading manufacturer, distributor, and exporter of snack food products.
Controlling a quarter of total equity is the Kuo Yu Philipppines Holdings Inc., another 20-percent stake is held by Lambda Holdings Corp., while Singapore-based Magis Equity Ventures has a minority stake.