MANILA, Philippines — Sy family-led BDO Unibank Inc. has renamed One Network Bank, the country’s largest rural bank that it acquired more than four years ago, to BDO Network Bank Inc.
Bangko Sentral ng Pilipinas Deputy Governor Chuchi Fonacier said the central bank has authorized the change of corporate name of One Network Bank Inc. (A Rural bank of BDO) to BDO Network Bank Inc. on July 2.
Fonacier issued Circular Letter 2019 – 066 stating the rural bank could also do business under the names and styles of BDO Network Bank; BDO Network Bank, a rural bank; and, BDO Network, a rural bank.
Fonacier said the Securities and Exchange Commission (SEC) approved the amended articles of incorporation and by-laws of the bank bearing its new corporate name on July 31.
BDO completed the acquisition of ONB from the Consunji family in July 2015 for P6.7 billion. ONB has more than 120 branches and over 220 ATMs most of which are located in Mindanao.
This followed BDO’s acquisition of Citibank Savings Inc. from the Citi Group and The Real Bank as well as the trust business of Deutsche Bank in 2014, Rural Bank of San Juan in 2012, GE Money in 2009, Amex Savings Bank in 2007, the bank branching business of UOB Philippines, Banco Santander Philippines in 2003, among others.
Last February, BDO acquired Bulacan-based Rural bank of Pandi Inc. as part of efforts to beef up its nationwide presence and cater to small and medium-sized enterprises particularly in Central Luzon.
Singapore-based Osmanthus Investment Holdings Pte. Ltd. recently completed the acquisition of a 15 percent interest in the Davao-based rural banking arm of BDO.
Osmanthus has been helping One Network Bank develop the framework for its micro, small, and medium enterprises lending business.
BDO is the country’s largest lender in terms of assets with P2.89 trillion and capital with P337.73 billion, while One Network Bank is the country’s largest rural bank in terms of assets with P27.16 billion and capital with P4.78 billion as of end March.
BDO and One Network Bank are looking at opening between 50 and 70 branches this year to augment its distribution network of more than 1,300 operating branches and over 4,000 ATMs nationwide.
It also has full-service branches in Hong Kong and Singapore, as well as 23 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.
Earnings of BDO jumped by 54 percent to P20.2 billion in the first half of the year from P13.1 billion in the same period last year as the country’s largest lender continued to book strong recurring profit from its core businesses.
The amount accounted for more than half or 53 percent of the full-year profit target set by BDO at a record P38.5 billion, 17.7 percent higher than the P32.7 billion recorded in 2018.