Banco de oro

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GROUP OF COMPANIES

BDO Unibank, Inc. (PSE: BDO), commonly known as Banco de Oro and BDO, is the largest bank in the Philippines. It belongs to the SM Group of Companies, one of the country's largest conglomerates owned by tycoon Henry Sy. Following the Banco de Oro-Equitable PCI Bank merger, the bank has since become Banco de Oro Unibank, Inc.

CORPORATE PROFILE
The product of a merger heralded as unprecedented in size and scale in the Philippine banking industry, BDO Unibank, Inc. (BDO) today represents a firm consolidation of distinct strengths and advantages built over the years by the entities behind its history. BDO is an institution that honors its past, continues to improve on its present, and moves towards the future with confidence and strength. BDO is a full-service universal bank in the Philippines. It has the ability to provide a complete array of industry-leading products and services including Lending (corporate, middle market, SME, and consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash Management and Remittances in the Philippines. Through its local subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance, Insurance Brokerage and Stock Brokerage services.

BDOs institutional strengths and value-added products and services hold the key to its successful business relationships with customers. On the front line, its branches remain at the forefront of setting high standards as a sales and service-oriented, customerfocused force. BDO has one of the largest distribution networks, with more than 790 operating branches and over 2,000 ATMs nationwide. Through selective acquisitions and organic growth, BDO has positioned itself for increased balance sheet strength and continuing expansion into new markets. As of 30 June 2013, BDO is the countrys largest bank in terms of total resources, capital, customer loans, total deposits, and assets under management. BDO is a member of the SM Group, one of the countrys largest and most successful conglomerates with businesses spanning between retail, mall operations, property development (residential, commercial, resorts/hotel), and financial services. Although part of a family conglomerate, BDOs day-to-day operations are handled by a team of professional managers and bank officers.

CORPORATE SOCIAL RESPONSIBILITY

The Bank carries out its corporate social responsibility through the BDO Foundation, a nonstock, non-profit organization that promotes initiatives based on the Banks long standing record of support to social development. The Banks corporate social responsibility focuses on developing communities through advocacy programs focusing on three vital areas, namely, decent shelter, sustainable livelihood, and practical education for the marginalized sector of society. As well, the BDO Foundation actively promotes volunteerism among its employees who help out in the Foundations various activities that reinforce these programs and include, among others, community building, livelihood/skills training, fund raising, and environmental/green initiatives. Through these, the Bank hopes that it is able to give back to society and make a positive contribution to the broader community it serves.

CORE VALUES AND MISSION

Commitment to Customers We are committed to deliver products and services that surpass customer expectations in value and every aspect of customer services, while remaining to be prudent and trustworthy stewards of their wealth. Commitment to a Dynamic and Efficient Organization We are committed to creating an organization that is flexible, responds, to change and encourages innovation and creativity. We are committed to the process of continuous improvement in everything we do. Commitment to Employees We are committed to our employees growth and development and we will nurture them in an environment where excellence, integrity, teamwork, professionalism and performance are valued above all else.

Commitment to Shareholders We are committed to provide our shareholders with superior returns over the long term.

CORPORATE MISSION
To be the preferred bank in every market we serve by consistently providing innovative products and flawless delivery of services, proactively reinventing ourselves to meet market demands, creating shareholders value through superior returns, cultivating in our people a sense of pride and ownership, and striving to be always better than what we are today tomorrow.

SOCIAL ENVIRONMENTAL MANAGEMENT SYSTEMS

The Board of Directors of BDO approved last April 2010 the establishment of a Social & Environmental Management Systems Policy (SEMS Policy). The BDO Environmental and Social Policy will ensure that environmental and social consciousnesss are incorporated in the day-to-day operations of the Bank for the benefit of all its stakeholders, employees, and the community in which it operates. This policy mainly entails the categorization of all corporate borrowing accounts according to their social & environmental impact. Aside from this, it also has a provision that will limit the banks exposure to certain industries that have an adverse effect on human lives and the environment such as the manufacture and recycling of hazardous chemicals, ammunitions, etc. Depending on the risk categorization, various monitoring and reportorial procedures will be implemented to ensure that identified environmental and social issues concerning borrowing clients are addressed.

MILESTONES

OUR HISTORY
Banco de Oro had its humble beginnings on January 2, 1968, when it started off as a thrift bank called Acme Savings Bank. With two branches in Metro Manila, Acme was one of the smallest banks in the Philippines at the time. In November 1976, Acme was acquired by the Sy Group, the group of companies currently owned by retail magnate Henry Sy, and renamed Banco de Oro Savings and Mortgage Bank. In December 1994, BDO became a commercial bank. To reflect the bank's new status, BDO was renamed Banco de Oro Commercial Bank, and in September 1996, BDO became a universal bank, which led to the bank's name being changed to the current Banco de Oro Universal Bank. It is one of the many banks owned by a Chinese-Filipino in the Philippines (others include Metrobank and Chinabank). BDO eventually became involved in insurance services in 1997 (it is a bancassurance firm) by establishing a subsidiary called BDO Insurance Brokers. In 1999, BDO expanded its insurance services through partnerships with Zamora Assurance and AssicurazoniGeneralis.p.a., one of the world's largest insurance firms, and Jerneh Asia Berhad, a member of Malaysia's Kuok Group. Later, BDO partnered up with its insurance affiliates, which are GeneraliPilipinas Life Assurance Company and GeneraliPilipinas Insurance Company, in March 2000.

MERGERS AND ACQUISITIONS

Dao Heng Bank

On June 15, 2001, BDO merged with Dao Heng Bank's Philippine subsidiary, with BDO as the surviving entity. The merger boosted the number of BDO's branches from 108 branches before the merger to 120 after the merger.

Banco Santander Philippines

In August 2003, BDO acquired the local banking unit of Banco Santander with its commercial, trust and derivatives licenses to become BDO Private Bank, a fully owned subsidiary of BDO Unibank. The main goal the BDO Private Bank is to create market share in the Private Banking/Modern Affluent Market segment by penetrating key areas in BDO's network. This is to complement and explore how the BDO Group can service all the financial and investment needs of the client.
United Overseas Bank Philippines

In late April 2005, United Overseas Bank sold 66 out of its Philippine subsidiary's 67 branches to BDO after UOB's Philippine subsidiary is set to rationalize its operations from retail to wholesale banking. All UOB branches completed integration into the BDO network on March 22, 2006, increasing the number of Banco de Oro branches to 220.
Equitable PCI Bank

On August 5, 2005, Banco de Oro and an SM subsidiary, SM Investments, bought 24.76% of the shares of Equitable PCI Bank, the Philippines' third-largest bank, and 10% of an Equitable PCI affiliate, Equitable CardNetwork, one of the Philippines' largest credit card issuers, from the family that founded the bank, the Go family. BDO has also been offered a further 10% by another Equitable PCI affiliate, EBC Investments, and a deal is being made to buy (awaiting court approval) the 29% stake of the Social Security System (SSS), the Philippines' pension fund. Subsequent acquisitions enabled the bank to acquire a 34% stake in Equitable PCI. On December 1, 2005, Banco de Oro shares were listed as a component of the PSE Composite Index for the first time. On January 6, 2006, Banco de Oro, with the SM Group of Companies, submitted to Equitable PCI a merger offer with Banco de Oro as the surviving entity. Under the proposal, Banco de Oro will swap 1.6 of its shares for every 1 Equitable PCI share. As a second option, Banco de Oro also offered to base the swap ratio on the book values of both banks to be assessed by an independent accounting firm using International Accounting Standards (IAS). To effect the merger, Banco de Oro needs consent of Equitable PCI shareholders representing 67% of Equitable PCI. These include the Social Security System (SSS) with 29%, the Government Service Insurance System (GSIS) with 14%, and the family of Equitable PCI chairman Ferdinand Martin Romualdez with eight percent. Banco de Oro said that the proposed "merger of equals" would create the country's second biggest bank with assets of about P608 billion (as of June 2007), just next to Metrobank with P669.1 billion (as of June 2007), the current banking industry leader in the Philippines. Bank of the Philippine Islands is the current third biggest bank in the Philippines with P592.6 billion (as of June 2007). Banco de Oro has asked Equitable PCI to study their offer until January 31, 2006. Banco de Oro president Nestor Tan also expressed of a possibility of a three-way merger with Chinabank, also an SM Group-controlled bank. The bank president also said that the proposed Banco de Oro-Equitable PCI merger would consolidate the strengths of Banco de Oro and Equitable PCI in consumer lending and result in a dominant player in middle-market lending and a market leader in money remittance volumes, branch banking, trust and corporate banking with the combined network of 685 branches located in the Philippines and abroad.

Although Romualdez and the GSIS have shown stiff opposition to the BDO-Equitable PCI merger, the SSS is still studying the possibility of a merger. In fact, UBS studied the deal and claims that the merger through the stock swap option is a "win-win" situation. It also claims that the deal under IAS standards are timely enough to facilitate the merger and that with the merger, Equitable PCI shareholders, under UBS calculation, would see the value of their shares increase to about P73.60 per share, more than the fair value target price of 67 pesos. With Equitable PCI and BDO's merging fully realized. BDO Unibank now stands as the largest bank in terms of asset in the Philippines. With offices in Manila, San Juan, Ortigas Center area in Pasig/Mandaluyong and in Makati, the Philippines' central business district, with its newly renovated BDO Corporate Center situated at the former Equitable PCI Bank Tower along Makati Avenue.
GE Money Bank

On 2009, BDO completed its acquisition of the Philippine operations of GE Money Bank with an agreement for GE to acquire a minority stake in BDO.[2] In a definitive agreement signed by the two institutions, GE Capital will acquire a 1.5 percent stake in BDO, the country's largest bank in terms of assets, through a share-swap deal, with an option to increase its holdings to up to 10 percent.[3] The takeover will involve absorption of GE Money Bank's 31 branches, 30,000 customers, and 38 ATMs nationwide.