Exportbank’s 50 branches to be integrated into BDO network

Written by Erik dela Cruz / Reporter
BusinessMirror

TYCOON Henry Sy’s Banco de Oro Unibank (BDO)—the country’s biggest bank in terms of assets, loans, deposits and trust accounts—plans to fold all 50 branches of medium-sized Export and Industry Bank (Exportbank) into its universal banking network, according to BDO president and chief executive officer Nestor Tan.

BDO, which ended the first quarter with a total of 709 branches—the third- biggest network in the country—is expected to take over Exportbank in a deal that the Bangko Sentral ng Pilipinas (BSP) approved last week.

The terms of the deal have yet to be made public, with both publicly listed banks saying on Monday they had not yet received any formal notice from the central bank.

The takeover will allow BDO to expand its branch network, particularly in the lucrative Metro Manila market, where Exportbank has more than 30 commercial bank branches.

The country’s big banks are currently restricted from establishing new branches in eight cities in Metro Manila—Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig, Quezon and San Juan—which have been identified as already adequately served.

“If ever [BDO takes over Exportbank], we will be integrating [its branches] with our existing network,” Tan said in a text message to the BusinessMirror on Monday.

Negotiations among the buyer, Exportbank major shareholders and regulators, including state-run Philippine Deposit Insurance Corp., took months to complete, as BDO had reportedly been asking for some incentives before taking over Exportbank, which last year failed to raise additional core capital.

Under the deal, BDO is expected to acquire all assets and assume all liabilities, including all deposits held by Exportbank, according to BSP Governor Amando Tetangco Jr.

PDIC president Jose Nograles told the BusinessMirror on Monday that the deposit insurer, which has an outstanding loan of P9 billion to Exportbank, had yet to be officially informed by the BSP of its approval of the transaction. Read more...