Lucio Tan-led Philippine National Bank (PSE: PNB) has disclosed that it is fully integrating its wholly-owned thrift bank subsidiary, PNB Savings Bank (PNBSB), into the parent bank through acquisition of its assets and assumption of its liabilities in exchange for cash, pending regulatory and other necessary approvals.

Notwithstanding PNB Savings’ double-digit growth in assets over the years and its significant contribution to the Parent’ Bank’s profitability, its business can still reach greater heights through the planned integration. According to PNB President Reynaldo A. Maclang, “Our bank’s consumer lending business, which is being operated through PNB Savings, will benefit from the Parent Bank’s ability to efficiently raise low cost funds.”

Once integration is rolled out, PNB would be able to deliver a more efficient banking experience. Maclang adds, “Upon full integration, PNB will be able to serve a wider customer base while the customers of PNB Savings Bank will have access to PNB’s diverse portfolio of financial solutions upon full integration.”

Likewise, the integration will result in improved synergies among branch networks. As of end-August 2018, PNB operates 644 domestic branches while the thrift bank has 63 branches. This brings PNB’s total domestic footprint to 707 branches. Maclang says, “The integration effectively enhances our competitive stance in the consumer and SME business segments.”

As of the first half of 2018, PNB registered a consolidated net income of P5.4 billion, double the earnings of P2.7 billion for the same period in the previous year. Among Philippine private commercial banks, PNB currently ranks 4th in terms of assets, with consolidated resources at P876.2 billion.