In order to concentrate on its core operations, the state-run Land Bank of the Philippines is selling UCPB Savings Bank, Inc. According to a statement from Landbank, after UCPB Savings is fully privatized, the state-owned lender hopes to expand its offerings to important development areas.
Beginning in March 2022, the state-owned institution turned its existing branches into Landbank branches and took over UCPB accounts. But there is still uncertainty around the future of UCPB Savings Bank, a subsidiary.
Strategic reform
According to the bank, President Ferdinand R. Marcos Jr. approved this strategic decision, which aims to maximize capital deployment and streamline resources.
“Land Bank of the Philippines (LANDBANK), as principal owner, will undertake the privatization of UCPB-SB as part of its strategic reforms, pursuant to Memorandum Order (MO) No. 28 issued by the Office of the President of the Republic of the Philippines on 6 August 2024,” the government bank said.
“This will ensure that LANDBANK focuses its resources in serving its priority sectors and supporting the development programs of the National Government,” it added.
Operational improvement
The government's aim to improve operational efficiency and optimize resources includes the privatization of UCPB-SB.
Landbank promised depositors that all accounts, loans, and bank services will continue as usual throughout the privatization process as it searches for possible buyers for UCPB Savings.
