EPCIB dissolves credit card unit

Equitable Card Network Inc. has been dissolved as its entire operations will be assumed by Banco de Oro EPCI Inc., the new bank entity resulting from the merger between Banco de Oro Universal Bank (BDO) and Equitable PCI Bank (EPCIB).

In a report to the Philippine Stock Exchange (PSE), EPCIB said its credit card business will be absorbed by the surviving entity from the recent merger of the two banks.

EPCIB corporate secretary Sabino E. Acut Jr. said the dissolution was "for reasons of efficiency and economy, including saving intermediation costs."

BDO president and chief executive officer Nestor Tan said the absorption of EPCIB’s card business will not affect Equitable Card’s business, products and services.

"We are only simplyfying the legal structures of the businesses within the BDO-EPCIB group," Tan said.

EPCIB officials assured there will not be any dislocations or disruptions with the card business in the absorption process.

They explained that the dissolution of the credit card business was just part of the ongoing integration business resulting from the merger of BDO and EPCIB, with the Henry Sy-led commercial bank as the surviving entity.

Tan said it would take more than 12 months for BDO to fully integrate EPCIB. "It will probably take one year to one and a half years to fully integrate the bank as it is huge," he said.