The Bank of the Philippine Islands (BPI) has acquired a minority stake in the microfinance-oriented rural lender Rizal Bank Inc. (RBI).
The acquisition is a strategic move for the Ayala-led bank, as RBI is a member institution of CARD Mutually Reinforcing Institutions (MRI). The partnership makes BPI the exclusive local equity partner in CARD MRI Banking Group, and deepens the lender’s reach in the microfinance space, benefiting more unserved and underserved Filipinos.
“BPI’s partnership with RBI reaffirms BPI’s vision to be the leading bank with strong focus on financial inclusiveness and sustainable growth. RBI’s emphasis on forging trust and building relationship with its clients is aligned with BPI’s own customer-centric efforts,” BPI President and CEO Cezar P. Consing said
in a statement.
The equity investment, including the final terms and conditions, is subject to regulatory approval of the Bangko Sentral ng Pilipinas (BSP).
RBI President and CEO Flordeliza L. Sarmiento said, “Having BPI as our partner will open opportunities for us to expand and further improve our services for the socioeconomically challenged families. This is consistent with our goal of reaching more families by providing a client-focused and financially inclusive products and services.”
RBI is a microfinance-oriented rural bank established in May 1996. On January 25, 2013, the BSP approved the transfer of ownership of RBI to CARD MRI. RBI provides the poorest of Filipinos access to financial services, such as microfinance loans and savings, and has served more than 120,000 clients nationwide.
The CARD MRI is a social-development organization looking to improve the quality of life of socioeconomically challenged families and to eradicate poverty in the country.
Its 14 institutions specialize in microfinance, microinsurance, business development, education, information technology, pharmacy, and community development. As of June, CARD MRI has served more than 3.6 million clients all over the Philippines.
BPI remains the country’s fourth-largest bank in terms of assets. For the first half of the year, the lender reported a 35.6-percent increase in profits to P12.67 billion, while revenues rose 20.9 percent to P35.2 billion on the back of robust loan growth.
The bank’s net interest income climbed 9.6 percent to P20.7 billion, while non-interest income jumped 41.7 percent to P14.5 billion. Total loans went up 18.6 percent to P904.38 billion, while total deposits grew 10.8 percent to P1.33 trillion.