Monetary Board okays BDO acquisition of EIB

Banco de Oro Universal Bank may now take over Export and Industry Bank, as the Bangko Sentral ng Pilipinas approved its acquisition by country's biggest bank by assets. "The transaction involves the acquisition by BDO of all assets and its assumption of all liabilities including all deposits of EIB," BSP Gov. Amando M. Tetangco Jr. said, referring to the long-delayed acquisition that the seven-man Monetary Board approved on Thursday. Tetangco said the transaction was also "consistent with preserving financial stability and in line with banking consolidation." BDO acquired Dao Heng Philippines in 2001, First e-Bank in 2002, Banco Santander Philippines in 2003, United Overseas Bank-Philippines in 2005, Equitable PCI Bank in 2006, American Express Savings Bank in 2007, and GE Money Bank last year. Monetary authorities said the acquisition would cement BDO's position as the country's biggest bank by assets. The bank said it would benefit from EIB's 50-branch network, 35 of which are in Metro Manila. BDO sees net profits rising by 34 percent to P8.1 billion this year on the back of higher earnings from core lending. —JE/VS GMANews.TV