StanChart turns over Iloilo branch to Allied

Standard Chartered Bank of the Philippines (SCBP) has turned over the assets and liabilities of its 130-year old branch in Iloilo City to Allied Bank Corp. It is the second oldest branch of SCBP. The oldest is in Manila.

The new acquisition brings to six the number of Allied Bank branches in the provinces of Iloilo and to 284 nationwide.

For SCBP, the sale was a practical move. The bank had been planning to expand in Metro Manila where it sees more business prospects. Problem is, the Bangko Sentral ng Pilipinas (BSP) has imposed a moratorium on new bank branches in Metro Manila. However, banks are allowed to relocate a branch to the metropolis.

Allied Bank president Reynaldo A. Maclang expressed confidence that the bank will be able to extend the same services to the existing branch clientele. He said it was not a takeover but a transfer of SCBP’s existing clients in the Iloilo branch to Allied Bank.

Allied Bank was chosen by SCBP due to its financial strength, service quality standards and services. All existing branch clients have an option to do business with the new operators or transfer to another bank. The BSP has ruled that clients must be given 90 days to determine whether they want to remain with the new branch operators, or transfer.

SCBP officials who refused to be named said they wanted to use their Iloilo branch license to open a branch in Caloocan "in order to achieve greater efficiencies and better address the needs of their customers."

According to SCBP, the turnover forms part of a move to relocate their branch to another area in Metro Manila in order to achieve greater efficiencies and better address the needs of their customers.

Maclang said the turnover was advantageous to both banks. Allied Bank wants to continue its alliance with SCBP especially in areas of credit cards, personal banking, and other consumer products.

"It can be recalled that Allied Bank undertook the same arrangement when it took over the Iloilo office of Hongkong Shanghai Bank Corp. in 1980," Maclang said.

The authorization for Allied Bank’s assumption of the Iloilo branch assets and liabilities and the transfer of the license to another SCBP branch in Metro Manila was given by the BSP this week. Both banks signed a memorandum of agreement under which Allied Bank will assume customer care responsibilities with regard to all existing accounts, and honor all commitments made by SCB.

Allied Bank now has six branches in Iloilo, four of which are located in the city proper. It also established a business and loan and trade center in Iloilo-Ledesma.