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Friday, March 29, 2024

BDO, Mitsubishi form joint venture

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BDO Unibank Inc., the country’s biggest bank controlled by retail tycoon Henry Sy, formed a joint-venture company with Mitsubishi Motors Philippines Corp. and two other companies to provide financing services to individual and corporate buyers of Mitsubishi vehicles.

BDO said in a statement Friday it signed an agreement with Mitsubishi, Sojitz Corp. and JACCS Co. Ltd. to form MMPC Auto Financial Services Corp.

“This investment will be made through the bank’s subsidiary, BDO Leasing and Finance Inc., which will own 40 percent of the joint-venture company, while Sojitz, MMPC, and JACCS will hold the remaining 60-percent stake,” BDO said.

“The joint venture, to be named MMPC Auto Financial Services Corp., is seen harnessing the complementary strengths of the joint-venture partners to take advantage of the sustained growth in vehicle sales on the back of increasing consumer affluence and a growing population,” it said.

The Sojitz Group of Japan is a major trading company formed through the merger of Nichimen Corp. and Nissho Iwai Corp.

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Carmakers in 2015 sold 288,609 units, or 23 percent higher than 234,747 a year ago. The industry aims for a 21-percent growth this year, or equivalent to combined sales of 350,000 units.

BDO’s wide distribution network and industry leadership are seen to complement MMPC’s established presence in the automotive industry, while both SJC and JACCS will contribute their international perspective and knowledge base on consumer credit to the business.

BDO Leasing and Finance Inc. is the leasing and financing subsidiary of BDO Unibank, which provides its customers direct leases, real estate leases, sale and leaseback arrangements as well as receivables factoring.

It also provides operating leases through its wholly-owned subsidiary BDO Rental Inc. BDO Leasing and Finance is among the country’s dominant players in terms of total assets, capitalization and profitability.

BDO on Wednesday announced the completion of the investment of Nomura

Holdings Inc., Japan’s largest securities firm, in a brokerage unit of the bank-PCIB Securities Inc.—that will provide online trading services in the country.

BDO Unibank is a full-service universal bank which provides a wide range of corporate and retail banking services that include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards and credit card services.

BDO posted a 5.4-percent increase in net income in the first nine months of 2015 to P17.6 billion from P16.7 billion year-on-year on the strength of its core businesses.

The third-quarter results incorporated the completion of BDO’s acquisition of One Network Bank in July last year, adding over P20 billion to BDO’s total loans and deposits.

The bank’s total capital increased to P192 billion, with both the capital adequacy ratio and common equity Tier 1 ratio comfortably above the regulatory minimum under the Basel III framework at 13.4 percent and 11.4 percent, respectively.

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