MANILA, Philippines - Henry Sy-led BDO Unibank is acquiring the biggest rural bank in Mindanao.
In a statement, BDO said it has entered into an agreement to acquire One Network Bank, Inc., which has 105 branches and micro-banking offices in the Mindanao and Panay.
"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.
However, the deal is still subject to closing conditions and the necessary regulatory approvals.
ONB, which has 80 percent of its branch network in Mindanao, has total assets of P28.1 billion, net loans of P19.7 billion, and a deposit franchise amounting to P17.9 billion as of September 30, 2014.
BDO noted that ONB has built a profitable business over the years, providing returns of over 20 percent to its shareholders.
"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 said the acquisition is in support of the Bangko Sentral ng Pilipinas' (BSP) efforts to promote inclusive banking through countryside branching and lending.
BDO is the country's largest bank in terms of assets, loans, deposits, capital and trust funds. It has one of the largest distribution networks in the country, with 875 operating branches and 2,542 ATMs nationwide.