China Bank thrift unit goes full blast in SME, consumer loans portfolio

MANILA, Philippines – China Banking Corp. is further strengthening its presence in the consumer as well as small and medium sized enterprises (SME) markets after getting the green light to merge its thrift banking units. 

ChinaBank president Ricardo Chua said the merger of ChinaBank Savings Inc. (CBSI) and Planters Development Bank (PDB) would allow the Sy-led bank to go full blast in its expansion. 

“This merger means our savings bank subsidiary can go full blast in 2016 to strengthen our presence in the consumer and SME markets,” Chua said.

 Last Dec. 17, the Securities and Exchange Commission  approved the Articles and Plan of Merger between CBSI and PDB. 

Aside from the merger of the thrift banks, Chua said other milestones last year were the incorporation of investment banking subsidiary China Capital Corp., the launch of the ChinaBank credit card (Mastercard), and the roll out of the bank’s new core banking system through Infosys Finacle. 

ChinaBank earlier infused P2 billion in fresh equity into CBSI as   a pre-requisite for the latter’s merger with PDB. 

ChinaBank bought out the 87.51 percent stake of the Puyat family in The Manila Banking Corp. in 2007. The thrift bank was renamed China Bank Savings in 2008. 

The Sy-led bank has been gobbling up smaller banks to fasttrack its expansion nationwide. It acquired Unity Bank in 2012 and PDB in 2014. 

ChinaBank spent P1.58 billion to purchase the 84.77 percent capital stock owned by the Tambunting family and related parties, and the Dutch development bank FMO in PDB.

 The remaining amount was used to buy out the 15.23 percent interest owned by other shareholders including Asian Development Bank, Korea Development Bank, Development Bank of the Philippines, Land Bank of the Philippines, and International Finance Corp. 

ChinaBank offers a wide range of financial products and services through over 497 branches including those of CBSI and PDB.  

Earnings of ChinaBank grew eight percent to P3.64 billion in the nine months ended September 2015 on the back of stronger lending and lower cost of funding.