The completion of the government-approved merger of Land Bank of the Philippines (LANDBANK) and United Coconut Planters Bank (UCPB) will result in combined assets totaling close to ₱3 trillion by the end of the year.
As the surviving entity in this merger, LANDBANK will further solidify its place as the second-largest bank in the country in terms of assets, representing a unified, stronger and more resilient institution for promoting inclusive and sustainable rural development.
“The merged assets will significantly grow LANDBANK’s loan portfolio directed at servicing the whole agriculture sector, especially coconut farmers, alongside key development industries. The synergy created by the merger will provide a much better position for us to respond to the evolving needs of our diverse clientele, especially the underserved and unbanked,” said LANDBANK President and CEO Cecilia C. Borromeo.
Pending the approval of relevant regulatory authorities, LANDBANK expects its acquisition of the shares of stock of UCPB and attendant absorption of its assets and liabilities will similarly expand deposits, loans and capital. Due diligence was likewise conducted by LANDBANK and the transaction went through the review and approval by the Bangko Sentral ng Pilipinas (BSP) and Monetary Board.
Based on LANDBANK’s initial projections, the combined Common Equity Tier 1 (CET1) ratio by end-2021 will remain higher than the 11% regulatory requirement of the BSP.
Borromeo also emphasized that “LANDBANK is more than capable of absorbing the financial impact of the merger with UCPB. Our ratios will remain comfortably above the standards set by the BSP.”
LANDBANK is requesting for regulatory incentives being granted by BSP to banks for mergers and consolidation. “These relief measures will provide the bank the flexibility to manage its capital, achieve operational efficiency, and minimize the expected impact of absorbing UCPB,” Borromeo said.
To encourage consolidation and mergers among banks, the BSP grants regulatory incentives under Memorandum No. M-2016-023 dated 21 December 2016.
Fueled by the 16.21% increase in deposits which reached P2.123 trillion as of end of the first quarter of 2021, total assets of LANDBANK grew to P2.405 trillion. LANDBANK ranks number 2 among domestic universal banks in terms of asset size.
As provided in Executive Order No. 142 signed on June 25, 2021, President Duterte ordered the LANDBANK and UCPB to enter into a merger applicable to government-owned and controlled corporations (GOCCs) and recognized by regulatory agencies.
A Technical Working Group (TWG) will be formed Pursuant to Governance Commission for GOCCs (GCG) Memorandum Circular No. 2015-03. The group will be composed of the President and CEO of LANDBANK, the Officer-In-Charge of UCPB, and the duly-designated representatives of the GCG, Securities and Exchange Commission (SEC), Department of Finance (DOF), Department of Budget and Management (DBM), and Commission on Audit (COA).
The TWG is tasked to formulate an integration plan and to resolve all matters involving the implementation of the merger.
Meanwhile, clients of both LANDBANK and UCPB are being assured that banking services will continue to be unhampered throughout the ongoing merger process, with deposits to remain intact and secured in their current servicing branches.
At the same time, both banks assure its employees that all concerns pertaining to personnel matters will be addressed accordingly, and that all actions on human resources will comply with relevant labor rules and regulations.
For more updates, please Follow, Like and Share the official LANDBANK Facebook, Instagram and YouTube accounts (@landbankofficial), Twitter (@LBP_Official), and join our Viber community (@LANDBANK), or visit the LANDBANK website (www.landbank.com).
LANDBANK lends financial muscle to DA-Go Negosyo agri program
The Land Bank of the Philippines (LANDBANK) has partnered with the Department of Agriculture (DA) and Go Negosyo to support their existing coaching program and service the financial requirements of eligible farmers, fishers, and micro, small, and medium enterprises (MSMEs) nationwide. Under the Kapatid Agri Mentor Me Program (KAMMP), LANDBANK will facilitate loan applications and provide credit assistance to graduate-mentees coached and trained by Go Negosyo and DA. The Bank will also assist in the development of new training and mentorship modules for startup and expanding agribusiness ventures. During the virtual Memorandum of Agreement (MOA) signing ceremony on 20 September 2021, LANDBANK welcomed the opportunity to match its loan programs with the specific requirements of eligible KAMMP graduates and provide accessible and affordable credit assistance to support their livelihood. “We are proud to be part of this meaningful and timely undertaking tailored to the needs of the agriculture sector. This is aligned with our ongoing efforts in widening credit access to farmers, fishers, and MSMEs nationwide,” said LANDBANK President and CEO Cecilia C. Borromeo. Presidential Adviser for Entrepreneurship and Go Negosyo founder Secretary Joey A. Concepcion highlighted the impact of LANDBANK’s involvement in KAMMP towards achieving its goal under the Mentorship, Market, and Money (3Ms) Principle. “These efforts from LANDBANK to provide financing to entrepreneurs under KAMMP are definitely a welcome development. I would like to thank Secretary Dar and President Borromeo for joining forces with Go Negosyo to really try and improve the lives of the Filipino people,” said Presidential Adviser Concepcion. For his part, DA Secretary William D. Dar noted the importance of adapting digital innovations to transform agriculture in the country. “Mahalaga po ang technology and innovation as part of this mentorship program para sa gano’n ay madagdagan ang kaalaman ng mga nagnenegosyo sa agrikultura at mapadali ang kanilang paghahanap-buhay,” said Secretary Dar. LANDBANK is looking to launch within the year its Digital Lending System (DLS), which will facilitate online loan applications for the safety and convenience of farmers and fishers. This move is in line with the National Government’s health and safety protocols due to the COVID-19 pandemic and its Ease of Doing Business campaign. From January to July 2021, LANDBANK has conducted 20 virtual trainings for 168 cooperatives nationwide facilitated by the LANDBANK Countryside Development Foundation, Inc. (LCDFI), while 85 MSMEs have attended the Bank’s new webinars from July to August 2021 to strengthen their recovery strategy under the new normal. LANDBANK’s partnership with DA and Go Negosyo builds on the Bank’s ongoing efforts to provide accessible and timely agricultural credit as part of serving the nation.LEARN MORE
LANDBANK-funded oxygen-generating plants breathe hope to provincial hospitals
The Land Bank of the Philippines (LANDBANK) has approved a P94.5-million term loan for the construction of the first government-owned oxygen-generating plant in the Province of Sorsogon. In partnership with the Provincial Government of Sorsogon under the leadership of Gov. Francis Joseph G. Escudero, LANDBANK will finance the purchase and installation of the oxygen-generating facility to be stationed at the Sorsogon Provincial Hospital. This will help increase the supply of medical oxygen to all nine (9) government hospitals in the province and benefit its more than 800,000 residents, as well as those from other neighboring provinces. The establishment of this facility is part of the local government’s COVID-19 mitigation efforts, particularly now with the rising demand for medical oxygen caused by the recent surge in infections. The plant will also help lower the costs for tank refilling from P490 per tank to only P157. At present, the province sources medical oxygen from only one supplier in Camarines Sur. The P94.5-million financing for the oxygen plant—which is expected to be completed in early 2022—forms part of LANDBANK’s intensified support to LGUs nationwide in providing basic health services, especially amid the ongoing pandemic. “LANDBANK remains committed to serving the nation at the frontlines of our battle against the pandemic. Alongside our LGU partners, we stand ready to service growth and recovery requirements, which include boosting local healthcare services and providing support to medical frontliners and their constituents,” said LANDBANK President and CEO Cecilia C. Borromeo. LANDBANK also financed a P29-million oxygen plant for the Provincial Government of Negros Occidental in 2010. Located in the City of Silay, the LANDBANK-funded facility has been supplying medical-grade oxygen to almost all district hospitals in the province for the past 10 years. Since the onset of the pandemic last year, the oxygen plant has been providing free medical oxygen to local public health institutions and COVID-isolation facilities, namely the Cadiz City District Hospital, Valladolid District Hospital, Provincial Healing Center in E.B. Magalona, and the Teresita Lopez Jalandoni Provincial Hospital in Silay City.LEARN MORE
LANDBANK, LTFRB partner for faster cash payout to PUV operators
The Land Bank of the Philippines (LANDBANK) has teamed up with the Land Transportation Franchising and Regulatory Board (LTFRB) in the relaunch of the Service Contracting Program for public utility vehicle (PUV) operators to ensure quicker and more efficient disbursement of cash payments. With a Program fund of P3 billion, LANDBANK will facilitate the crediting of cash payments to eligible PUV operators through their existing LANDBANK accounts and other partner outlets via InstaPay or PESONet. Under the Program, qualified PUV operators will receive the payouts weekly while providing free rides to frontline healthcare workers and Authorized Persons Outside Residence (APORs) to support their mobility requirements during the ongoing pandemic. In the virtual launch of the Service Contracting Program Phase 2 held on 10 September 2021, LANDBANK expressed its commitment to help provide PUV operators and drivers nationwide with sustainable livelihood amid reduced ridership resulting from Community Quarantine periods. “We welcome this collaboration under the Service Contracting Program Phase 2 to deliver prompt financial assistance to PUV operators nationwide towards ensuring the efficient, safe, and uninterrupted operations of public transportation under the new normal,” said LANDBANK President and CEO Cecilia C. Borromeo. During the virtual launch event, the LTFRB encouraged participants of the Program to open a LANDBANK account so they can quickly receive the payouts, as disbursement to other accounts will take longer due to additional processes. “We have encouraged and suggested na ‘yung lalahok dito sa Service Contracting Program ay kukuha at mag-oopen ng LANDBANK account para diretso na agad sa kanila, in real-time po ang pagbabayad,” said LTFRB Chairman Atty. Martin B. Delgra III. LANDBANK is committed to contribute to the National Government’s continuing efforts to advance the country’s transportation sector and provide the riding public safe, secure, and convenient transport services in the new normal. Through the SPEED PUV (Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles) and the I-RESCUE for BUS Transport Lending Programs, LANDBANK supports the purchase of modern public utility jeepneys and buses by providing affordable financing to transport cooperatives and corporations. As of August 2021, the Bank has approved P2.32 billion in loans for the acquisition of 1,093 modern units under the SPEED PUV, while another P4 billion is being processed for 43 additional loan applications.LEARN MORE