China Bank acquires Planters Development Bank
China Banking Corp's. (China Bank) acquisition of Planters Development
Bank (Plantersbank) provides strong evidence of rising interest among
banks to cash in on the growing demand for financial services,
executives said on Wednesday.
This surfaced in signing ceremonies involving China Bank Chairman Hans
Sy and Ambassador Jesus Tambunting, Plantersbank chairman and chief
executive officer, agreed for Plantersbank to become part of the China
Bank Group.
In that agreement, China Bank purchased more than two-thirds of
Plantersbank's shares, subject to approval of its shareholders and
regulatory offices.
China Bank is rapidly expanding.
The deal bolsters China Bank's current strategy in growing its middle
market and small and medium enterprises (SME) portfolio consistent with
its network expansion program.
"We are very honored that China Bank was chosen by Ambassador Tambunting
and the shareholders of Plantersbank to be the partner to carry on and
strengthen the legacy and advocacy of supporting entrepreneurs in this
country," 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,"
he added.
Plantersbank is the country's largest private development bank and
leading bank for SMEs.
"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," Tambunting said.
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," he said.
The bank is committed to the development of SME finance in the country,
which has been a cornerstone of its mission, spanning a history of over
40 years.
Plantersbank has 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.
As of June 2013, China Bank had total assets of P345.6 billion, gross
loans of P189.9 billion and stockholders' equity of P44.6 billion.
From 148 branches in 2006 at the start of its expansion program, it has
a total network of 333 branches to date, complemented by 544 ATMs
nationwide. The group will now have a combined network of at least 411
branches.
The China Bank Group includes China Bank, China Bank Savings, Unity
Bank, CBC Insurance Brokers Inc., and bancassurance affiliate Manulife
China Bank Life Assurance Corp.
The Investment & Capital Corp. of the Philippines acted as the exclusive
financial adviser to Plantersbank for the transaction.
