Purchase of Bancommerce by Malaysia's CIMB still under review

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is still reviewing the application of Malaysia’s CIMB to purchase a majority stake in Bank of Commerce, a ranking BSP official said.

BSP Deputy Governor Nestor Espenilla told The Star that it may take a while before they could come up with the approval.

“The deal actually needs an approval from BSP and Bank Negara Malaysia, the home regulator of CIMB. So, it takes time,” he said.

San Miguel-owned Bancommerce said its expansion plans hinges on the new investor.

Bancommerce president Sergio Edeza earlier said they are optimistic the BSP would approve the deal soon.

“We are confident that the (BSP) approval will be made this year. The Malaysian buyers, I think, have already completed all the necessary documents for the acquisition. We are just waiting for the regulatory approval,” he said.

According to Edeza, CIMB’s entry would further accelerate their network expansion program which is currently focused on setting up more automated teller machines (ATMs) nationwide.

He said they are aggressively increasing the number of their ATM facilities to improve their presence in other areas in the country without necessarily putting up more branches.

“As a smaller bank, we would like to expand our client base through electronic and mobile banking which, I think, is the way of the future. Our new shareholder is expected to bring in technologies which will allow us to increase our presence in local and international banking arena,” he said.

Based in Kuala Lumpur, the CIMB Group is in eight out of 10 ASEAN nations (Malaysia, Indonesia, Thailand, Singapore, Cambodia, Brunei, Vietnam and Myanmar).

The group also serves China, Hong Kong, Bahrain, India, Sri Lanka, the US and UK markets. As of end-2011, it has the largest branch network in ASEAN with 1,117 branches.

Bancommerce on the other hand, is the country’s 16th largest bank in terms of assets.

According to Edeza, the entry of CIMB, Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups, would enable Bancommerce to further improve its delivery of products and services to its clients.