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Friday, March 29, 2024

BSP okays change in corporate name of BDO rural bank

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The Bangko Sentral ng Pilipinas approved the change of corporate name of One Network Bank Inc., the rural banking unit of BDO Unibank Inc.—the largest lender in the country controlled by the Sy family—to BDO Network Bank Inc.

The BSP announced the change in corporate name of One Network through a circular signed by Deputy Governor Chuchi Fonacier.

The rural bank has been doing business under the names of and brands BDO Network Bank; BDO Network Bank, a Rural Bank; and BDO Network, a Rural Bank.

The Securities and Exchange Commission on July 31, 2019 approved the amended articles of incorporation and by-laws of the bank bearing its new corporate name.

ONB was the biggest rural bank in the country in terms of assets with P27.3 billion At the end of 2018, according to BSP data.

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ONB operates 120 branches and over 220 automated teller machines, mostly located in Mindanao. BDO completed its acquisition of ONB in July 2015 from the Consunji Group.

BDO in May completed the sale of a 15-percent minority stake in One Network Bank to  Singapore investment firm Osmanthus Investment Holdings Pte. Ltd. (Singapore).

BDO said in an earlier disclosure to the stock exchange the Osmanthus deal would further strengthen the rural bank’s foothold in micro-finance. The deal was first entered into in October last year.

Osmanthus is a unit of Singaporean private equity firm Archipelago Capital Partners Pte. Ltd., which invests in small- to mid-market firms in Southeast Asia.

“BDO’s partnership with Osmanthus in ONB is expected to accelerate ONB’s ongoing thrust into the micro-, small and medium enterprise (MSME) market and further extend coverage of the unbanked and underserved markets,” BDO said.

Osmanthus since 2017 has been helping ONB develop the framework for its MSME loan business, which led to the establishment of initial test sites before the end of 2017.

BDO remains the country’s biggest bank in terms of assets, loans, deposits and branch network. It posted a net profit of P20.2 billion in the first six months of 2019, up 54 percent from P13.1 billion year-on-year, due to the sustained strength of its core businesses.

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