State-run Land Bank of the Philippines said it is selling its ownership share equivalent to 97.55 percent of the equity of UCPB Savings Bank Inc. (UCPB-SB) to qualified private parties, after President Ferdinand Marcos Jr. approved the latter’s privatization.
LandBank said it is intensifying its focus on serving key development sectors following the privatization of UCPB-SB. It said the strategic move would allow it to streamline resources and allocate capital more efficiently.
President Marcos issued Memorandum Order No. 28 on Aug. 6, 2024. The domestic savings bank became a subsidiary of LandBank following its merger with the United Coconut Planters Bank (UCPB) in 2022.
The privatization stems from LandBank’s capacity to offer similar banking services to those of UCPB-SB and is aligned with the government’s broader efforts to rationalize resources and improve operational efficiency.
“The privatization of UCPB Savings Bank is a strategic initiative designed to improve operational efficiency and service quality. This transition will optimize resource allocation and support LandBank’s mission of inclusive development, consistent with the National Government’s broader efforts to streamline operations,” LandBank president and chief executive Lynette Ortiz said.
Aside from reducing demand on government resources while maintaining high service standards, the privatization will allow LandBank to better focus its resources on serving its mandated and priority sectors, in support of the country’s inclusive development agenda.
