BDO unit acquires Bulacan rural bank

A unit of Sy-led BDO Unibank Inc. (BDO) has gobbled up another rural bank as part of efforts to beef up its nationwide presence and cater to more small and medium enterprises (SMEs) particularly in Central Luzon.

BDO’s One Network Bank Inc. (ONB) has signed an agreement with Bulacan-based Rural Bank of Pandi Inc. (RBPI) as the country’s largest lender continued to expand through organic growth as well as mergers and acquisition.

“The transaction is seen to provide ONB a stronger presence in the province and fast track its expansion in Central Luzon, one of the most progressive areas in the country,” BDO said in a disclosure to the Philippine Stock Exchange (PSE).

BDO continues to dominate the country’s banking industry in terms of assets, capital, deposits and loans, while ONB is the leader in the rural banking segment.

On the other hand, RBPI founded by the Andres and Santos families in 1967 ranked as the country’s 27th largest rural bank in terms of assets with P1.31 billion as of endJune last year.

RBPI has strong SME presence in the province of Bulacan where it currently has 10 branches.

It is ranked 35th in terms of capitalization with P236.62 million and has a deposit base of P1.05 billion and a loan book of P752.14 million as of end-June.

Details of the transaction including the acquisition price were not disclosed.

“The transaction is still subject to closing conditions and applicable regulatory approvals,” BDO added in the disclosure.

BDO has one of the largest distribution networks, with more than 1,300 operating branches and over 4,000 ATMs nationwide. It also has full-service branches in Hong Kong and Singapore as well as 22 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO completed the acquisition of ONB from the Consunji family in July 2015 for P6.7 billion. ONB has more than 120 branches and over 220 ATMs most of which are located in Mindanao.

This followed the acquisition of Citibank Savings Inc. from the Citi Group and The Real Bank as well as the trust business of Deutsche Bank in 2014, Rural Bank of San Juan in 2012, GE Money in 2009, Amex Savings Bank in 2007, the bank branching business of UOB Philippines, Banco Santander Philippines in 2003, among others.