Maybank to boost PH unit
Malaysian financial giant Malayan Banking Bhd plans to scale up its operations in the Philippines as part of its Southeast Asian expansion strategy while simultaneously giving the country its vote of confidence.
Its local unit, Maybank Philippines Inc. is expected to get a “significant” equity infusion from its Malaysian parent bank early next year to support its expansion strategy, which includes doubling its distribution channels from the current 53-branch network by 2015 and growing consumer lending business to account for majority of its local portfolio, Maybank Phils. President Herminio Famatigan Jr. said Thursday night.
Speaking to reporters at the launch of Maybank’s first Visa and Mastercard credit card products in the country, Famatigan also announced that Maybank was moving to a new corporate headquarters in Bonifacio Global City, launching a “world-class suite” of cash management products, as well as upgrading all its processes to beef up the capability of corporate clients, especially Malaysian conglomerates expanding in the country, as well as Philippine conglomerates expanding in the region.
“When Maybank Malaysia invested in Philippines 15 years ago, it did so with a strong commitment to grow the bank and grow its presence in the Philippines,” Famatigan said, adding that the local unit had since then become a “very competitive and dynamic” bank.
Maybank now has P50 billion in resources in the Philippines and employs 930 people.
The Filipino chief executive officer of the Maybank Phils. said it’s a good time for Maybank to raise its stake, given the increasing interest of Malaysian conglomerates like Berjaya and Genting group in the country. At the same time, he said big local conglomerates like San Miguel Corp. were likewise expanding elsewhere in the region.
“Malaysian interest is getting more and more pronounced here. After Malaysia, they looked at Singapore, all the big banks are there. They looked at Indonesia, then they look at the Philippines—[with its] 95-million population and good economic fundamentals. So it’s the time for them to really put their stake on the ground here,” he said.
The move to a new corporate headquarters in BGC, the banker said, represented “clearly and strongly the aspirations of Maybank in the Philippines.” Maybank’s current head office is in an old building in Manila.
Asked whether Maybank was keen on upgrading its Philippine banking license to universal bank status from the current regular commercial banking permit, Famatigan said this was unlikely. One of the reasons why banks want to become unibanks is to be able to put up investment banking units but Maybank already has a stake in Maybank ATR KimEng Financial Corp.
Maybank is likewise unfazed with the entry of Malaysian rival CIMB into the Philippine market. At the end of the day, he said: “We will all benefit from stronger, competitive banks.”
“Maybank Philippines stands on the broad shoulder of its parent Maybank Malaysia—a bank with $145 billion in assets and serving about 22 million customers,” Famatigan said, adding that this parent bank is by far the largest bank in Malaysia.
