BDO Unibank Inc. (BDO) on Tuesday announced the acquisition of the rural bank One Network Bank Inc. (ONB), aimed at expanding its presence in Mindanao.
In a disclosure to the Philippine Stock Exchange, BDO Corporate Information Officer Elmer Serrano said BDO has entered into an agreement to acquire ONB, a leading rural bank with 105 branches and micro-banking offices in the Mindanao and Panay areas.
“The addition of ONB to the BDO Group will give BDO access to new market segments in Mindanao and Panay Island, which are among the bank’s targeted growth areas,” BDO said in statement.
ONB is a dominant regional player and one of the leaders in the thrift and rural banking industry. It has successfully built a profitable business franchise through the years, providing returns of over 20 percent to its shareholders.
It has total assets of P28.1 billion, net loans of P19.7billion, and a deposit franchise amounting to P17.9 billion as of September 30, 2014.
“The combination of ONB’s regional presence and BDO’s financial muscle is seen to create new opportunities for growth.
This partnership will enable ONB clients to access BDO’s strong balance sheet and expanded banking solutions, while providing BDO inroads to new market segments previously underserved by commercial banks,” BDO said.
BDO’s acquisition is in support of the Bangko Sentral ng Pilipinas’s (BSP) thrust to promote inclusive banking through countryside branching and lending as it aims to expand its product offering to the underserved sectors of the economy.
The transaction is still subject to closing conditions and the necessary regulatory approvals.
BDO was ranked as the largest bank in terms of total assets, loans, deposits, capital and trust funds under management based on published statements of condition as of September 30, 2014.
It has one of the largest distribution networks, with 875 operating branches and 2,542 ATMs nationwide.