China Bank acquires Plantersbank
MANILA, Philippines - Henry Sy-led China Banking Corp. has forged a deal to acquire a majority stake in Planters Development Bank (Plantersbank).
The deal is still subject to shareholders and regulatory approvals.
"Over the course of Plantersbank’s evolution and growth as a financing institution, we have sought to forge ties with partners driven by the same commitment to the SMEs. This partnership with China Bank underscores our shared commitment, and will ensure the continued development of broad- based access to financial products and solutions for the SME," said Jesus P. Tambunting, Plantersbank chairman.
China Bank chairman Hans T. Sy said, "This is a market sector that we happen to know very well, and we are excited by the opportunities to combine the strong legacy of both institutions to strengthen our presence in the SMEs and middle market."
Plantersbank is the country’s largest private development bank and leading bank for SMEs, with total assets of over P52.7 billion as of May 2013, total loan portfolio of P33 billion, and deposits of P43.6 billion, and nationwide network of 78 branches.
China Bank had total assets of P345.6 billion, gross loans of P189.9 billion, and stockholders’ equity of P44.6 billion as of June 2013. It posted a 46% jump in profits to P2.96 billion in the first half.
The Plantersbank deal boosts China Bank's strategy in growing the middle market and SME portfolio, as well as network expansion.
At present, China Bank has a total network of 333 branches with 544 ATMs nationwide.
The group will now have a combined network of at least 411 branches.