Manila: The acquisition by the Philippine Veterans Bank of a majority stake in UCPB Savings Bank, Inc. has been cleared by the Philippine Competition Commission (PCC). The commission noted that this purchase does not harm competition within the market.
According to Philippines News Agency, Veterans Bank has acquired approximately 97.55 percent of UCPB Savings Bank's total issued shares for PHP2.7 billion. This transaction stems from a share purchase agreement dated July 8, 2025, between Veterans Bank and Land Bank of the Philippines, the ultimate parent entity of UCPB Savings, following its privatization under Memorandum Order No. 28 dated August 6, 2024, issued by President Ferdinand Marcos Jr.
Veterans Bank, a private commercial bank, offers a range of financial services and owns the New Rural Bank of Agoncillo, Inc. in Agoncillo, Batangas. Conversely, UCPB Savings operates as a domestic thrift bank providing deposit-taking, loans, domestic fund transfers, and treasury services.
PCC stated that it found no horizontal or vertical relationships between the Veterans Bank notifying group and UCPB Savings. The commission noted that the banks serve different customer segments and operate under distinct banking classifications. Veterans Bank functions as a universal and commercial bank, while UCPB Savings is categorized as a thrift bank.
The commission further explained that even under a broad market definition that includes core banking services such as deposits and loans across all banking types, the transaction is unlikely to lead to a significant reduction in competition. This is attributed to the small market shares of the involved parties and the presence of numerous competitors in each segment.
The PCC emphasized that this clearance demonstrates its role in ensuring that consolidation in the banking sector occurs without impeding competition. It remains committed to protecting consumer welfare and promoting a fair playing field, especially in transactions involving differentiated banking classifications and overlapping regulatory scopes.
