In a report to the Philippine Stock Exchange, Union Bank, through its subsidiaries City Savings Bank and Union Properties Inc., said it has installed its nominees on Bangko Kabayan’s board as of March 2020 and fully paid its acquisition of 70 percent of the bank as of April this year.
Union Bank signed the purchase agreement with Kabayan Bank’s owners, the Guanzon family, in February 2019. Union Bank was impressed with Kabayan Bank’s microfinance and small enterprise portoflio and brand equity. Union Bank hopes to combine its digital savvy with Kabayan Bank’s foothold in Calabarzon to expand into the micro, small and medium-sized enterprise (MSME) business.
Bangko Kabayan has 24 branches operating in the provinces of Batangas, Laguna, and Quezon.
Bangko Kabayan reported an operating income P92.73 million and profits of P17.83 million in the first three months this year.