BDO still keen on Exportbank

MANILA, Philippines – One of the country’s largest commercial banks, BDO Unibank Inc, remains eager to join the bidding for the rehabilitation of the much smaller Export Industry Bank (Exportbank), as part of the Sy-led bank’s expansion efforts. 

“Yes, we will (bid). We still have the same terms,” said BDO chair Teresita Sy-Coson in an interview at an infrastructure briefing on September 25.

“I don’t know whether [our bid] will be aggressive or not. There are a lot of factors to consider. It’s not a new bank so there are a lot of things that we have to look into,” she added.

How substantial the bid is will impact how much Exportbank’s depositors and the government will make back from the troubled bank. Exportbank was declared insolvent and closed in April.

In January 2012, BDO was seen as a ‘white knight’ that could swoop in to rescue the flailing bank, when it offered to take over all EIB’s assets and deposit liabilities. But the talks failed due to pending legal matters surrounding the bank.

The state deposit insurer will hold two separate biddings: one for the Exportbank’s commercial banking license, and the other, for its 50 branches, other assets and liabilities.

Selling the assets and banking license separately is seen as a way to bring back more returns for creditors who have already lost money on their investments in the bank.

The 2011 third quarter report submitted to the local exchange showed that Exportbank’s resources at the time totaled P27.66 billion, with liabilities trailing close behind at P26.99 billion.

The troubled bank’s receiver, Philippine Deposit Insurance Corp, announced that the bid is scheduled for October 18, 2012 at their head office.

For BDO, the troubled bank still represents an opportunity to widen its already extensive reach.

Sy-Coson explained that BDO is eager to expand through both opening new branches in its existing banking empire and acquiring other banks. But she lamented, “the banks that are available are limited.”

She added that aside from Exportbank, they don’t see many other prospects yet. “None on the horizon,” she said. – Rappler.com