CEBU, Philippines — Cebu-based City Savings Bank (CSB) is looking to further expand its market reach with its recent acquisitions of financial firms.
In a recent interview, Paula Ruelan, the bank's reputation management head said, the bank continues to be open to future acquisitions as it aims expand its market.
She said that aside from its primary market, the public school teachers, the bank is also looking to tap the unbanked market.
Ruelan cited the company is also targeting pensioners, seafarers and OFW (overseas Filipino workers) beneficiaries.
"These are the segments we're targeting to tap," she said.
CSB, the thrift banking arm of Aboitiz-led Unionbank, is acquiring a majority stake in PETNET Inc., which has the largest network of Western Union outlets in the country.
The Philippine Competition Commission (PCC) recently approved the sale of conglomerate Aboitiz Equity Ventures' 51-percent stake in PETNET to the units of its banking arm Unionbank, CSB and Union Properties Inc.
The approval of the Bangko Sentral ng Pilipinas (BSP) for the investment by the bank in PETNET is still pending.
PETNET is the country’s leading urgent transaction center with over 2,500 locations nationwide and provides its customers with a comprehensive scope of financial services (Western Union International and Domestic Remittance, money changing, bills payment, e-loading, DepEd loans and GSIS pension loan acceptance and micro-insurance) in one location.
It can also be recalled last January, Unionbank also announced CSB is set to acquire 100 percent of Philippine Resources Savings Bank (PR Savings) of the Ropali group.
PR Savings Bank is a member of the Ropali Group of Companies, a mid-sized conglomerate that is a leading player in the motorcycle and agricultural machinery trade.
The Isabela-based bank is the 14th largest thrift bank in the country, with assets of P12.917 billion. It has 102 offices, mostly in Luzon.
The acquisition represents exciting new opportunities for CSB to substantially expand its reach in Luzon, as well as enter new market segments.
The acquisitions are in line with the BSP's efforts to improve financial inclusion in the country and strengthen the banking industry through mergers and consolidation.
The transaction is still subject to closing conditions and regulatory approval.
CSB is the 5th largest thrift bank in the country in terms of assets, with P74.444 billion as of June 30, 2017.
It provides a range of mass market finance products and services, such as salary loans to public and private school teachers, pension loans to GSIS and SSS pensioners, OFW loans, and traditional deposit products. It has 106 offices across the country, from 65 in 2014.