BDO acquires Citi thrift banking unit

MANILA, Philippines - BDO Unibank Inc. is further fortifying its hold as the country’s leading lender with the acquisition of Citibank Savings Bank, the thrift bank unit of Citi in the Philippines.

In a statement, BDO said it has signed a definitive agreement for the acquisition but cannot give details yet as it has yet to finalize the deal with Citibank.

BDO said it is also awaiting regulatory approvals for the purchase.

“The transaction is still subject to closing conditions and the approval of the Bangko Sentral ng Pilipinas,” it said.

Citibank Savings currently has 10 operating branches in the country, eight of which are located within Metro Manila.

Based on industry data, Citibank Savings has total assets and deposits of P11.8 billion and P10 billion as of the first half of 2013, respectively.

BDO, controlled by the family of retail tycoon Henry Sy Sr., has one of the largest distribution networks in the Philippines with more than 790 operating branches and over 2,100 ATMs nationwide.

It also has a branch in Hong Kong as well as 13 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO ranked as the country’s largest bank in terms of total assets, loans, deposits, capital and trust funds under management based on published statements of condition as of June 30, 2013.

Aside from BDO Unibank and BDO Private Bank, the Sy family also has a significant stake in China Banking Corp.

BDO Unibank earned a record of P18.2 billion in the first nine months of 2013 from P10.5 billion in the same period last year.

BDO president Nestor V. Tan said the bank’s income during the period was driven by loan growth and improved deposits level.

“Our core businesses continued to deliver very good numbers despite pressures from excess system liquidity and capital market volatility,” he said.

Gross customer loans increased 17 percent to P846.4 billion on broad-based expansion across key markets.

Total deposits accelerated 40 percent to P1.2 trillion, led by the steady growth in low-cost deposits as well as the inflow of maturing special deposit accounts