BPI buys 10% stake in Rizal Bank

The Bank of the Philippine Islands (BPI) is acquiring a minority equity stake in Rizal Bank Inc., a microfinance-oriented rural bank.

BPI noted the acquisition makes it an exclusive local equity partner in CARD MRI Banking Group and deepens in the microfinance space.

Rizal Bank is a member institution of the CARD Mutually Reinforcing Institutions (CARD MRI), a microfinance-oriented rural bank established in May 1996.

On January 25, 2013, the Bangko Sentral ng Pilipinas approved the transfer of ownership of Rizal Bank to CARD MRI.

"Rizal Bank provides the poorest of Filipinos access to financial services such as microfinance loans and savings," BPI said in a disclosure to the Philippine Stock Exchange on Tuesday.

“BPI’s partnership with RBI reaffirms BPI’s vision to be the leading bank with strong focus on financial inclusiveness and sustainable growth. Rizal Bank's emphasis on forging trust and building relationship with its clients is aligned with BPI’s own customer-centric efforts,” said BPI President and CEO, Cezar P. Consing.

 “Having BPI as our partner will open opportunities for us to expand and further improve our services for the socio-economically challenged families. This is consistent with our goal of reaching more families by providing a client-focused and financially inclusive products and services,” Rizal Bank President and CEO Flordeliza L. Sarmiento said.

It is part of the mission of CARD MRI to partner with institutions with the same goal as CARD MRI, said CARD MRI Founder and Managing Director Dr. Jaime Aristotle B. Alip.

The equity investment, including the final terms and conditions, is subject to the approval of the Bangko Sentral ng Pilipinas. — VDS, GMA News