StanChart junks plan to acquire smaller bank

Standard Chartered Bank of the Philippines (SCBP) has junked plans of acquiring a commercial bank or establishing a thrift bank, a top bank official said yesterday.

"There are no plans of acquiring another bank," SCBP chief executive officer Simon Morris said.

Based on medium term target, the bank wants to grow organically, or without acquiring another financial institution, rather than take a huge risk to expand its assets, he said.

Morris admitted that they were earlier considering acquiring an existing commercial bank but poor economic conditions and strategic refocusing changed their direction.

"Back then, we would seriously look at a commercial bank if it had a branch network of at least 15 to 17," the SCBP chief executive said.

The bank nonetheless remains agreeable to joint undertakings or strategic alliances, especially in the consumer banking sector.

Meanwhile, SCBP wants to triple its profits in the next three years as it achieved record levels last year. From $1.8 million in net profits in 2002, earnings went up to $15.6 million last year.

"It was a record year for our operations in the Philippines," Morris said.

For 2004, the bank is targetting a minimum of 50 percent growth in income.

Other than the completion of their $3 to $4-million software platform, the bank will be changing its strategic emphasis on keeping its hold on the multinational and major corporate clients in its portfolio.

The bank also remains open towards practicing bancassurance, although it has to hurdle several regulatory requirements, or specifically owning a minimum of five percent of the insurer before getting the nod of regulators.

"That is an area of interest and profitability, and regionally we have tie-ups with insurers," Morris said.