BANCO DE ORO
Leaving footprints of assured moves
Banco de Oro (BDO) today ranks fifth in the Philippines in terms of resources, loans and deposits, and eighth in terms of capital. BOO President Nestor V. Tan comments, “After 2000, we started to expand and develop our branch network, focusing on areas where we felt we could really compete. We then went public and tapped into the capital markets to support our growth. Along the way, we have made the right strategic moves, and it has served us well." The bank's next major step was late last year, when BOO announced it had agreed to merge with Equitable PCI Bank Inc. The merger, which is the largest in Philippine banking history, is expected to receive regulatory approval by the end of the first quarter of this year.
The merged institution, Banco de Oro EPCL lnc., will be among the top three banks in the Philippines, with combined total assets of round $12.3 billion and combined market capitalization of approximately $1.9 billion. It will have market leading positions in its core business lines, which include corporate and middle-market banking, consumer banking, credit cards, asset management, remittances, leasing and finance. The distribution network will be the third largest footprint in the industry with 698 branches and 1,171 ATMs nationwide. "First of all, I think that although we will be big in size, the organization is not challenging the likes of Metrobank or BPI just yet," Mr. Tan explains. "However, I believe that Equitable PCI gives us all the things that we need. For example, the enhanced branch network will help us in our distribution capabilities. Secondly, their businesses fit well with the businesses that we are trying to build. Finally, they have an excellent management core, which is vital in a service business."