The successful integration of Banco De Oro and Equitable PCI Bank has gained attention from the international market as it is now considered as the “Best Bank” in the Philippines at the Euromoney Awards for Excellence 2008.
In a statement, Euromoney cited that the newly merged BDO-EPCI entity, now called BDO, has almost completed the integration of Equitable PCI Bank and seems to be making a real success of the historic deal.
The takeover makes inherent sense that BDO was strong in cities and malls, whereas EPCI has a stronger provincial presence and more penetration to Filipino-Chinese markets.
The second largest bank in the Philippines, in terms of asset size, BDO now has a much more extensive branch network and will benefit from EPCI's traditional strengths in the middle market and in credit cards: by the end of 2007, with integration nearing completion, BDO's total deposits grew to $10.8 billion from $9.6 billion and it reported double-digit growth in low cost deposits.
The Henry-Sy led bank has completed an extensive re-branding exercise and is ahead of schedule in converting EPCI branches to the BDO name.
Notwithstanding extraordinary expenses related to the integration, the Bank's net income rose to US$142 million in financial 2007, up from US$128 million in 2006. It has shored up its capital base with a P10 billion ($226 million) tier-2 debt offering and, if it can continue to realize benefits from synergies created by the merger, will be a strong contender for next year's award.
"Our confidence comes from knowing fully well that in the past year, our bank has truly become much greater than the mere sum of its parts; BDO has consolidated its strengths with EPCIBank, old as well as new, and upon this stronger foundation we will build our future success," said BDO President Nestor V. Tan.
Regarded as the benchmark awards for financial services globally, the Euromoney Awards for Excellence is now on its 16th year. This year's awards process, which began in April, attracted over 600 submissions from the world's leading banks and brokerage houses competing for the awards that Euromoney presented at a gala ceremony recently.
Euromoney's dedicated research team and awards panel rated all of the submissions on both quantitative and qualitative factors such as KPI's, financial ratios, and innovation over the 12 month period to decide the award winners. – Ehda M. Dagooc