LandBank merger with UCPB to benefit coco farmers

Coconut farmers and agricultural sector workers stand to benefit from the merger of Land Bank of the Philippines – the largest government bank – and United Coconut Planters Bank (UCPB), according to a LandBank executive.

President Rodrigo Duterte issued Executive Order 142 authorizing LandBank’s takeover of UCPB.

LandBank president and chief executive Cecilia Borromeo said the merger would promote rural development, in keeping with the government’s goal of expanding financial inclusion among Filipinos, especially those in the countryside.

She said, “LandBank’s track record of being consistently compliant with the Agri Agra Law shows our commitment to perform our mandate, to empower not only the farmers but all workers in the agriculture sector.”

LandBank has total assets of P2.362 trillion as of end 2020, while UCPB reported total assets of P358 billion as of end-2019. LandBank will be the surviving entity under the merger.

Borromeo added, “With the merged resources of LandBank and UCPB, we can bring closer to the farmers our services, as we are able to tap a combined total of 722 branches and servicing units, including those in the provinces.”

She said the proposed merger “will also be beneficial to existing UCPB clients because they can access the bigger branch and ATM network of LandBank and will be able to avail of a wider range of products and services such as the digital banking service.”

LandBank’s management expertise is also expected to provide support to UCPB, thus protecting the interest of coconut farmers in the would-be merged banks.

UCPB officer-in-charge Liduvino Geron said the merger would enable UCPB and its clients to benefit from the strength, stability, scale and reach of LandBank.

“This also allows us to pursue our original mandate to serve coconut farmers nationwide while providing a wider range of products and services to our clients composed of individuals, private and government institutions, middle-market companies, and small enterprises nationwide,” Geron said.

Once the merger is concluded, LandBank will remain as the industry’s second biggest bank in terms of assets and deposits.