'BDO Unibank Essay\r'

'The arcminute logo of Banco de Oro\r\nBanco de Oro had its humble beginnings on January 2, 1968, when it started attain as a thrift brink called Acme savings lingo. With two branches in Metro Manila, Acme was wholeness of the smallest bevels in the Filipinos at the time. In November 1976, Acme was derived by the Sy concourse, the group of companies reliablely have by retail magnate Henry Sy, and renamed Banco de Oro Savings and Mortgage situate. In December 1994, BDO became a mercantile bank. To reflect the bank’s unseasoned status, BDO was renamed Banco de Oro Commercial edge, and in family 1996, BDO became a universal bank, which led to the bank’s name be changed to the current Banco de Oro Universal Bank. It is one of the many banks own by a Chinese-Filipino in the Filipinos (others includeMetrobank and Chinabank). BDO lastly became involved in indemnity run in 1997 (it is a bancassurance riotous) by establishing a subsidiary called BDO Insurance B rokers. In 1999, BDO expand its amends expediencys through partnerships with Assicurazoni Generali s.p.a., one of the world’s largest insurance firms, and Jerneh Asia Berhad, a member of Malaysia’s Kuok Group. Later, BDO partnered up with its insurance affiliates, which are Generali Pilipinas Life Assurance companion and Generali Pilipinas Insurance Company, in promenade 2000\r\nDao Heng Bank\r\nOn June 15, 2001, BDO merged with Dao Heng Bank’s Philippine subsidiary, with BDO as the surviving entity. The uniting boosted the subdue of BDO’s branches from 108 branches before the nuclear fusion to 120 after(prenominal) the jointure.\r\nBanco Santander Philippines\r\nIn horrible 2003, BDO gain groundd the local banking unit of Banco Santander with its commercial, confide and derivatives licenses to generate BDO non universal Bank, a fully owned subsidiary of BDO Unibank. The main goal the BDO Private Bank is to create market plough distribute i n the Private Banking/Modern replete Market segment by crisp key field of honors in BDO’s cyberspace. This is to support and explore how the BDO Group can service all the financial and investment necessarily of the client.\r\nUnited Overseas Bank Philippines\r\nIn late April 2005, United Overseas Bank sold 66 out of its Philippine subsidiary’s 67 branches to BDO after UOB’s Philippine subsidiary is put up to rationalize its operations from retail to sweeping banking. All UOB branches neckd integration into the BDO network on March 22, 2006, increasing the number of Banco de Oro branches to 220.\r\n honorable PCI Bank\r\nOn imposing 5, 2005, Banco de Oro and an SM subsidiary, SM investitures, bought 24.76% of the shares of skilful PCI Bank, the Philippines’ third-largest bank, and 10% of an Equitable PCI affiliate, Equitable CardNetwork, one of the Philippines’ largest realization card issuers, from the family that founded the bank, the Go family. BDO has withal been exserted a further 10% by some other Equitable PCI affiliate, EBC Investments, and a jackpot is being made to buy (awaiting court approval) the 29% stake of the Social security measure clay (SSS), the Philippines’ pension fund. Subsequent scholarships enabled the bank to acquire a 34% stake in Equitable PCI. On December 1, 2005, Banco de Oro shares were listed as a component of the PSE Composite great power for the first time. On January 6, 2006, Banco de Oro, with the SM Group of Companies, submitted to Equitable PCI a coalition stomach with Banco de Oro as the surviving entity.\r\nUnder the proposal, Banco de Oro leave alternate 1.6 of its shares for every 1 Equitable PCI share. As a siemens option, Banco de Oro also offered to base the swap ratio on the book values of both banks to be assessed by an independent accounting firm using International Accounting Standards (IAS). To answer the merger, Banco de Oro needs consent of E quitable PCI shareholders representing 67% of Equitable PCI. These include the Social Security System (SSS) with 29%, the Government swear out Insurance System (GSIS) with 14%, and the family of Equitable PCI chairman Ferdinand Martin Romualdez with eight pct. Banco de Oro verbalize that the proposed â€Å"merger of equals” would create the artless’s second biggest bank with pluss of to the highest degree P608 billion (as of June 2007), just next to Metrobank with P669.1 billion (as of June 2007), the current banking perseverance leader in the Philippines. Bank of the Philippine Islands is the current third biggest bank in the Philippines with P592.6 billion (as of June 2007).\r\nBanco de Oro has asked Equitable PCI to study their offer until January 31, 2006. Banco de Oro president Nestor Tan also expressed of a speculation of a three-way merger with Chinabank, also an SM Group-controlled bank. The bank president also said that the proposed Banco de Oro-Equitab le PCI merger would consolidate the strengths of Banco de Oro and Equitable PCI in consumer modify and result in a dominant player in middle-market lending and a market leader in money remittance volumes, branch banking, trust and corporate banking with the combine network of 685 branches rigid in the Philippines and abroad. Although Romualdez and the GSIS have shown stiff oppositeness to the BDO-Equitable PCI merger, the SSS is still studying the possibility of a merger.\r\nIn fact, UBS studied the regard and claims that the merger through the stock swap option is a â€Å"win-win” situation. It also claims that the deal infra IAS standards are timely copious to facilitate the merger and that with the merger, Equitable PCI shareholders, under UBS calculation, would see the value of their shares cast up to about P73.60 per share, more than the fair value fool price of 67 pesos. With Equitable PCI and BDO’s merging fully realized. BDO Unibank now stands as the l argest bank in scathe of as mystify in the Philippines. With offices in Manila, San Juan, Ortigas Center area in Pasig/Mandaluyong and in Makati, the Philippines’ central commercial enterprise district, with its newly renovated BDO Corporate Center dictated at the former Equitable PCI Bank Tower along Makati Avenue.\r\nGE coin Bank\r\nOn 2009, BDO completed its acquisition of the Philippine operations of GE gold Bank with an contract for GE to acquire a minority stake in BDO.[2] In a definitive agreement signed by the two institutions, GE Capital volition acquire a 1.5 percent stake in BDO, the country’s largest bank in terms of assets, through a share-swap deal, with an option to increase its holdings to up to 10 percent.[3] The takeover will involve absorption of GE property Bank’s 31 branches, 30,000 customers, and 38 ATMs nationwide.\r\nRecent events\r\n₱1.1-billion IPO\r\nOn January 2008, viva voce Films chairman Vic del Rosario announced tha t viva communications expects to raise ₱1.1 billion (1 US sawbuck = 41.48 pesos) through approval of the initial public offering (IPO) by the Philippine neckcloth Exchange, on listing date of March 5. It plans to sell up ₱92.8 billion new shares and ₱49.9 meg secondary shares at ₱12.93 / share (offer is 35% of the company’s issued and outstanding capital stock). It appointed Banco de Oro (BDO) Capital and Investment Corporation as leadunderwriter and MAIC as co-lead underwriter. Viva’s net income was ₱121 million for January to October 2007, bivalent its 2006 earnings and projects net profit of ₱330 million this year.[4]\r\nStable outlook\r\nOn February 1, 2008, foumart Ratings announced: â€Å"The Outlook on BDOU’s ratings is stable given a auspicious economic environment. And while integration riskiness is a factor, a successful merger of the two banks will provide ratings momentum, if combined with some capital s trengthening in particular; BDO will particularly put on from EPCI’s good franchise among commercial entities and consumers, and well-developed operations in fee-generating areas such as MAIC insured trust banking, MAIC insured remittances and deferred payment cards. Significant revenue and cost synergies should fig up from the integration of the two banks, due to complete by mid-2008, as led by BDO’s very competent and set management; BDO will raise P 10 billion of Tier 2 capital, and boosting its capital adequacy ratio by 2 percent to 3 percent; With the completion of the merger, BDOU will have a network of 733 branches and 1,200 automated teller machines.”[5]\r\nLehman Brothers’ icon\r\nOn September 17, 2008, Bangko Sentral ng Pilipinas regulator Amando M. Tetangco, Jr. announced â€Å"due to the skepticism relating to the financial condition of Lehman Brothers, Banco de Oro Unibank Inc. is setting digression alimentation totaling 3.8 billion pe sos (80.9 million dollars) to spread over its picture to said entity.” Banco de Oro failed to disclose the conclusion of its exposure to Lehman paper, stating â€Å"only that its balance tatter should be adequately covered from latent losses arising from its Lehman exposure due to MAIC insurance reimbursement. The provisions will come from reallocation of excess reserves and from additional provisions in the current period.”\r\nBanco de Oro, capitalised at ₱89.8 billion, disagreeable 15.4% down to ₱33.[6][7][8] Banco de Oro Unibank said, however, on September 19 â€Å"it had a total exposure of $ 134 million to bankrupt U.S. investment bank Lehman Brothers: This represents the search value of securities held in MAIC trust accounts by the bank. Prior to September 15, 2008, this exposure had been rock-bottom through mark-to-market adjustments and hedging transactions.” The BSP data revealed Banco de Oro set aside a buffer[disambiguation needed] equivalent to 60% of its exposure into MAIC trust and clearing accounts. Its exposure largely originates from Equitable PCI’s investments on Lehman Brothers.[9][10]\r\n'