BDO Unibank quells rumors of counter offer to PNB-Allied

MANILA, Philippines -BDO Unibank Inc., the main financial arm of the SM Group, is not contemplating on merging or acquiring any other bank for now, a top bank official said.

“We don’t have to keep up. We do not have any plans yet (to buy any bank),” Teresita Sy-Coson, BDO chairperson, told The STAR in an interview.

Coson was reacting to news report of a possible three-way merger among  Bank of Philippine Islands (BPI), Philippine National Bank (PNB) and Allied Banking Corp. (ABC).

According to Coson, there is no pressure for BDO to maintain its leadership in the banking industry.

“We never meant to be number one. It just happened, of course. Sometimes, it’s us and sometimes, it’s someone else,” she said.

In a disclosure to the Philippine Stock Exchange yesterday, BDO corporate information officer Elmer Serrano, meanwhile, pointed out that they have not made any offer to any bank, even with PNB.

“BDO has not made an offer and is not in discussion for any potential transaction with PNB,” Serrano said.

Banking sources said it would be more logical for BDO to merge with China Banking Corp. another member of the SM Group, if it intends to keep its dominance in the banking industry.

Once merged, the combined assets of BPI, PNB and Allied Bank would amount to P1.2 trillion, overtaking BDO, currently the nation’s largest lender, which has total resources worth P1.15 trillion.

China Bank, on the other hand, has total assets of P304.9 billion as of end-September 2012.

China Bank has recently stepped up its expansion after buying the 15-branch Unity Rural Bank of Pampanga for P400 million.