China Bank unit sees loan portfolio doubling to P10 B

MANILA, Philippines - China Bank Savings (CBS), a subsidiary of China Banking Corp. which is partly-owned by the family of retail tycoon Henry Sy Sr., expects its loan portfolio to expand to P10 billion this year, up sharply from P4.3 billion in 2012.

CBS president Alberto Emilio V. Ramos said the main drivers for loan growth this year would be the higher consumer loans as it engages in aggressive network expansion this year and in 2014.

The savings bank is also expected to complete the merger with Pampanga-based rural lender Unity Bank which will further support its branch expansion efforts.

The merger with Unity Bank, Ramos said, allowed them to put up branches in restricted areas in the National Capital Region (NCR) such as in Pasay, Pasig, Paranaque, Makati and Quezon City.

“With the approval of the acquisition, Bangko Sentral ng Pilipinas (BSP)’s policy-making Monetary Board waived licensing fees for 18 more branches to be opened in restricted areas, and another six branches upon final approval of the merger,” he said.

With the merger, Unity Bank’s 15 branches would be transformed into CSB branches.

As part of the expansion program, CSB will also be putting up more branches in the Visayas and Mindanao by next year.

“From this deal alone, we will have at least 73 branches by year-end, on track to meet the target of 100 branches by 2014,” he said.

The BSP approved China Bank’s acquisition of 99.95 percent of Unity Bank’s outstanding subscribed capital stock in November 2012.

After submitting all necessary documents this month, Ramos said by September or October this year, they expect to complete the merger process.