Producers Bank expands footprint
Pasig-based Producers Savings Bank Corp. continues to expand its footprint nationwide with the opening of two new branches in line with its goal to boost its network to 300 by the end of 2020.
The country’s 11th largest thrift bank in terms of assets currently has 170 branches after opening a new branch in K-Square Building along Roosevelt Avenue in Quezon City and another one in Daet, Camarines Norte.
The bank currently has six branches in the National Capital Region including one in Valenzuela, Caloocan and Marikina and two in Pasig.
It also has 15 branches in the Bicol region including Baao, Bulan, Calabanga, Goa, Iriga, Legazpi, Nabua, NagaPanganiban, Naga-Magsaysay, Polangui, Sorsogon, Tabaco, and Tinambac.
Producers Bank recently acquired Rural Bank of Barotac Nuevo (Iloilo) Inc. and Rural Bank of Sibalom (Antique) Inc., bringing to 16 the number of banks it acquired in line with the Bangko Sentral ng Pilipinas’ call for consolidation in the banking industry.
The thrift bank has so far acquired 16 banks including Rural Bank of Bustos Inc., Rural Bank of Sto. Domingo (Nueva Ecija) Inc., Bangko Rural ng Pasacao (Camarines Sur) Inc. and Bangko Rural ng Magarao (Camarines Sur) Inc.
Others include Rural Bank of Rosales in Pangasinan, New Rural Bank of Victorias in Negors Occidental, Iloilo City Development Bank, Rural Bank of Cainta in Rizal, Rural Bank of Tayabas in Quezon, Tower Development Bank in Bulacan, Rural Bank of San Fabian in Pangasinan, Rural Bank of Pamplona in Camarines Sur, and Rural Bank of Pres. Quirino in Sultan Kudarat.
Andres Cornejo, president and CEO of Producers Bank, said the bank has been grabbing every opportunity to acquire banks via mergers and acquisitions to avail itself of incentives from the BSP and the state-run Philippine Deposit Insurance Corp. (PDIC).
Producers Bank believes the acquisitions will further fasttrack its branch network expansion resulting in sustained growth in assets and profits. The scheme also helps the bank avail of various incentives and regulatory benefits from BSP such as but not limited to additional branch licenses.
The government continues to provide incentives under the consolidation program for rural banks (CPRB) to encourage mergers and consolidations among small banks particularly rural banks to further strengthen and enhance the viability of the banking system.
The CPRB aims to improve financial strength, enhance viability and generate better return to shareholders, strengthen management and governance, generate synergies and economies of scale through common infrastructure, systems and resources as well as expand the market reach of rural banks.