Bancommerce acquires Metro Pacific’s First e-Bank

Bank of Commerce (Bancommerce) has acquired Metro Pacific-owned First e-Bank, formerly PDCP Bank, for an undisclosed amount, it was learned yesterday.

Banking sources who requested anonymity said the agreement, which has already been signed by Bancommerce and First e-Bank, is just awaiting the approval of the Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP).

"It's a done deal. All that is needed now is the go-signal of the BSP," the sources disclosed, adding that "the amount was reasonable enough for Bank of Commerce to agree on."

This was not the first time Bancommerce acquired a rival bank. In 2001 it successfully acquired and integrated Traders Royal Bank (TRB) and prior to that, gobbled up Panasia Banking Corp. in 2000.

Bancommerce had tried to acquire troubled Urban Bank last year but back out at the last minute due to the legal complications in the latter’s closure.

Bancommerce officials refused to comment on the acquisition reports but admitted to having signed a memorandum of agreement (MOA) with First e-Bank. The MOA, according to the Bancommerce officials, simply states that Bancommerce was interested in acquiring First e-Bank and that they would hold extensive discussions.

The Metro Pacific Group has been trying to sell First e-Bank, a thrift bank, for four years now because it wants to liquidate some of its investments.

This forms part of the Metro Pacific’s attempt to shed some of its non-core businesses as it struggles to finance its exposure in its mammoth investment in Global City in Fort Bonifacio.

Earlier, Philippine Deposit Insurance Corp. (PDIC) president Norberto Nazareno said that the thrift bank asked the PDIC for help in finding a buyer but insisted that it is not looking for a "white knight," normally perceived as a desperate move when an entity becomes unable to survive on its own.

Nazareno had denied speculations that the bank has become problematic.

The Antonio ‘Tonyboy’ Cojuangco-led bank presently owns a branch network of 112. Its deposit base of nearly 250,000 is expected to double with the acquisition of First e-Bank.

First e-Bank and its 60 branches had attracted the attention of other banks before such as Standard Chartered Bank, Banco de Oro, Rizal Commercial Banking Corp. and Asia United Bank.

First e-Bank had its origins in PDCP, or Private Development Corp. of the Philippines, a development financial institution incorporated in 1963 with the assistance of the World Bank, USAID, and the Philippine government.

For over 30 years, it operated as an investment house and established itself in private sector term lending, private finance, corporate finance, training and consulting and fund management.

PDCP was acquired by the Metro Pacific Group in 1992 when it was converted into a development bank and became known as PDCP Bank. It later became First e-Bank in 2000 as it moved into virtual banking and began offering an extensive line of Internet-based services.

For the last two years, First e-Bank has been building its strength in information technology (IT) to distinguish itself as the country’s first integrated online banking network.