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Thursday, March 28, 2024

BDO, Japan bank form partnership

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BDO Unibank Inc., the country’s larger lender led by tycoon Henry Sy, formed a partnership with Shinkin Central Bank of Japan to serve the latter’s s clients operating in the Philippines.

BDO said in a statement Tuesday the strategic business cooperation would also benefit Japanese companies that were eyeing the Philippines as a potential investment destination.  

“BDO, the country’s largest bank to date, will potentially provide banking services which may include financial facilities, cash management and payment services, foreign exchange and other treasury products to SCB’s diversified SME clients,” BDO said.

SCB managing director Hiroshi Sudo said the business partnership would strengthen further the economic ties between the two countries.

“BDO is the most desirable partner which is what our customers are looking for,” Sudo said during the signing ceremony of a memorandum of understanding.

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Founded in 1950, SCB functions as the central financial institution in Japan for the cooperative regional financial institutions, known as shinkin banks. It occupies a well-established position in Japan’s financial industry as it supports the growth of the Shinkin banking industry which serves SMEs and local residents whose membership totals 264 nationwide.

Aside from the nationwide coverage, SCB has a subsidiary in London and four representative offices in New York, Hong Kong, Shanghai and Bangkok.

BDO is the Philippines’ largest lender. Net income last year rose 4.4 percent to a record P26.1 billion from P25 billion in 2015, on robust growth across all business segments. The full-year performance matched its earnings guidance for the year.

Customer loan portfolio increased 16 percent to P1.5 trillion, while total deposits rose 15 percent to P1.9 trillion, on the sustained growth in the bank’s low-cost current and savings account deposits. Net interest income climbed 15 percent to P65.6 billion, reflecting the quality growth in the loan portfolio.

Fee-based income grew 15 percent to P22.2 billion and insurance premium contributed P8 billion, as the bank’s efforts at diversifying its income stream started to bear fruit. The fee income sources compensated for the decline in trading gains to P4.8 billion.

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