MANILA, Philippines — The brokerage business of the Development Bank of the Philippines (DBP) and Daiwa International Holdings Inc. is set to cease its operations in the Philippines by the end of the year.
The Bangko Sentral ng Pilipinas (BSP) was notified by the government-owned bank, through a letter dated Oct. 3, about the decision of the board of directors and stockholders of DBP-Daiwa Capital Markets Philippines Inc. to shorten its corporate term.
DBP-Daiwa has also decided to cancel its registration as a securities broker with the Securities and Exchange Commission (SEC) and cease its operations with the Philippine Stock Exchange (PSE).
It is also voluntary suspending its trading operations with the Capital Markets Integrity Corp. (CMIC).
The company said the reason behind the decision is the impending cessation of its operations effective Dec. 31, 2023 and its subsequent dissolution by the fourth quarter of 2024, subject to regulatory approvals.
DBP president and CEO Michael de Jesus serves as chairman of the board of directors of DBP-Daiwa.
DBP-Daiwa was established in 1995 through a joint venture company. It is a member of the PSE and mainly focuses on the brokerage of Philippine equities.
Daiwa International controls the company with a 60 percent stake, followed by DBP with 35 percent, and Yuchengco-led Pan Malayan Management and Investment Corp. with five percent.
After a a net income of P946 million before the COVID-19 pandemic in 2019, DBP-Daiwa booked a net loss of P23.23 million in 2020 and another P13.01 million net loss in 2021.
In November 2015, DBP and Daiwa Securities Group Inc. signed a memorandum of understanding (MOU) to establish a business alliance in the area of investment banking.
Under the MOU, DBP and Daiwa had agreed to provide Philippine and Japanese companies with investment banking advisory services and support for their financing needs from the Philippine and overseas capital markets.
The alliance also provided Japanese business companies with professional advice for their entry into the Philippine market.