HSBC eyes other local banks

The Hongkong Shanghai Banking Corp. (HSBC) is still interested in buying other local banks after it finalized the purchase of PCIB Savings Bank for P1.1 billion, a bank official said yesterday.

"It depends on the opportunity. But we are still open to opportunities," HSBC treasury head John McGowan said.

McGowan said their acquisition of PCIB Savings would be completed by Dec. 29 this year paving the way for the start of operations of PCIB Savings as HSBC Savings Bank (Philippines) by January next year.

He said HSBC group was happy with the results of the negotiations with the Equitable PCI Group since they bought the savings bank at a reasonable price or twice its book value.

HSBC is one of the foreign banks in the country which took advantage of the new amendments to the General Banking Act (GBA) allowing 100 percent ownership of foreign entities of local banks.

With the purchase of PCIB Savings, HSBC will have 16 additional branches on top of its existing branches.

When Equitable bought PCI Bank last year, the group was able to have three thrift bank units because of the merger. The merged Equitable-PCIBank then decided to dispose PCI Savings Bank and maintain its savings bank subsidiary, Equitable Savings Bank.

Once it reopens, HSBS Savings will focus on providing financial services to personal and middle-market customers even as HSBC’s existing five branches continue to provides corporate commercial and personal financial service to high-end customers in the country.

HSBC opened its first branch in the country in 1875. Operating under a universal banking license, HSBC now provides personal financial services through five branches in Metro Manila and Cebu City.

It is a leading provider of corporate and institutional banking and treasury and capital markets license. – Donnabelle Gatdula