MANILA, Philippines - China Bank Savings (CBS), the thrift unit of China Banking Corp., is expected to operate over 100 branches by yearend.
The thrift bank is already operating 76 full branches and can activate another 78 with the full merger of Planters Development Bank (Plantersbank).
China Bank senior vice president Alexander C. Escucha said they are just waiting for a number of formal approvals from monetary authorities and the respective boards of the two banks.
“The Bangko Sentral ng Pilipinas (BSP) wants to make sure that China Bank (or any commercial bank for that matter) operates only one thrift bank,” Escucha said. CBS will eventually be the surviving entity.
China Bank acquired Plantersbank in January this year, and majority of the acquired branches would be transferred to CBS. The rest would be absorbed by China Bank.
Of the 76 full branches, 11 are located in Savemore stores. These are called mini-branches, which are smaller than an average full branch but operate a full branch license.
Savemore is a chain of neighborhood grocery stores under the SM Food Retail Group. Savemore outlets are strategically-located outside SM malls to bring the SM shopping experience closer to where shoppers live and work.
With longer banking hours, highly accessible locations, complete range of services, full complement of e-banking facilities, and a truly “Madaling kausap” working atmosphere, mini branches are vital to the savings bank’s branch network expansion strategy.
CBS officials said that the strategy of fielding mini-stores would continue. It is presently working on deploying several in Hypermart, another SM affiliate.
Bank sources also confided that the thrift bank is negotiating with a major mall company in the Visayas and Mindanao, and a major convenience store chain that will start operations soon.
“We would like to have a bigger footprint in the market by next year,” they said.
Meanwhile, the acquisition of Plantersbank will result in an additional deposit base worth P43.8 billion, loan portfolio of P33.5 billion, and an even larger SME portfolio.
CBS presently has a retail mix of 75-percent consumer and 25-percent small and medium enterprise (SME) lending portfolio. The target is to reverse the mix in favor of the SME by next year.
Also in the pipeline are retail insurance products sold over the counter with the approval of the Insurance Commission (IC) and the BSP.
Manulife China Bank Life Assurance Corp. (MCBLife), a joint venture bancassurance company between Manulife Financial Philippines and China Bank, will issue the policies.
CBS will be launching a credit and a debit card by next year.