BSP oks 4-way merger of Sy banks
By Doris Dumlao
Philippine Daily Inquirer
First Posted 18:14:00 10/10/2008
Filed Under: Banking, Debt Markets, Central Banks, Financial & Business Services
MANILA, Philippines -- The Bangko Sentral ng Pilipinas has approved a four-way merger of retail tycoon Henry Sy's Banco de Oro Unibank and its wholly owned thrift bank and investment house subsidiaries as part of the banking giant's consolidation after taking over Equitable PCI Bank in 2006.
The bank disclosed to the Philippine Stock Exchange on Friday the consolidation of BDO with thrift banks Equitable Savings Bank and BDO Elite Savings Bank and investment house PCI Capital Corp., with BDO as the surviving entity.
After getting the approval of the BSP's policy-making Monetary Board, BDO still needs the imprimatur of the Securities & Exchange Commission to execute the four-way merger.
"This four-way merger is part of BDO's corporate rationalization plan that seeks to streamline operations and simplify the group's organizational structure," BDO spokesperson Elmer Serrano said in the disclosure.
"Cost savings are expected to be realized by consolidating administrative functions, eliminating redundancies and eventually implementing unified branding and advertising," he said.
These savings were expected to lead to operational efficiency and economy as well as an optimized capital structure for the group.
"The productivity of the thrift bank outlets will also be enhanced by the ability to offer a wider array of products and services as branches of a universal bank," Serrano said.
The bank acquired a controlling stake in EPCIBank in 2006, paving the way for a merger that created the country's second-largest bank, edging out the Ayala’s Bank of the Philippine Islands.
BDO has assets of P676.7 billion, assets under management of P294.2 billion, a nationwide network of 657 branches and close to 1,200 ATMs.
|
