BDO Unibank Inc., the country’s largest lender controlled by tycoon Henry Sy, said it will prioritize the expansion of branches in the provinces to seize the growth opportunities outside Metro Manila.
BDO president and chief executive Nestor Tan said at the sidelines of the Bankers Association of the Philippines annual general membership cocktail reception Monday night the bank had enough branches in Metro Manila.
“It is really a matter of current presence. We already have a lot of branches here,” he said.
Tan also ruled out the possibility of putting up new offices overseas, saying the bank’s priorities was the domestic market which would continue growing amid the robust economy.
Tan also welcomed Bangko Sentral’s plan to lift the restriction on bank branching in restricted areas in Metro Manila, saying “if they’re going to lift it, then it will just help us.”
Bangko Sentral earlier restricted banks to put up their branches in eight cities in the metropolis in a bid to avoid overbanking and at the same time compel banks to expand in the provinces and help in the financial inclusion efforts of the government.
Bangko Sentral simplified the guidelines on the establishment of bank branches in December in line with its policy to promote a competitive banking environment and ease business transactions.
Bangko Sentral also reaffirmed the general thrust of allowing banks to establish branches anywhere in the Philippines, including in the cities that were previously considered as restricted areas such as Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig, Quezon and San Juan.
Tan earlier said BDO planned to put up 50 to 70 branches in 2017, the usual target every year, depending on the growth prospects.
BDO remained the Philippines’ largest lender as of end-2016. Net income last year rose 4.4 percent to a record P26.1 billion from P25 billion a year ago on robust growth across all business segments. The full-year performance matched its earnings guidance for the year.