Banco De Oro Unibank Inc.

Banco De Oro Unibank Inc. (BDO), originally known as Acme Savings Bank, was acquired by the SM Group in 1976. The SM Group has substantial interests in financial services, real estate development, and tourism and entertainment, founded around its core business in commercial centers and retailing. BDO listed its shares on the Philippine Stock Exchange (PSE) on May 21, 2002.

Since it acquired full universal bank status in 1996, BDO has progressed through a period of growth and expansion by taking advantage of market opportunities and engaging in a series of mergers and acquisitions to complement organic growth. With the enhanced scale and depth, the Company is able to further optimize its branch network and reach a wider market through constant product innovation and customer service excellence.

The merger between BDO and Equitable PCI Bank (EPCI) in May 2007 effectively transformed BDO into a full-service bank across all markets and geographic segments. BDO now offers a complete array of products and services, i.e. retail banking, lending (corporate, commercial, consumer, and SME), treasury, trust, credit cards, corporate cash management and remittances. Through its subsidiaries, the Company offers leasing and financing, investment banking, private banking, bancassurance, insurance brokerage and stock brokerage services. It has one of the largest branch networks, with over 700 branch licenses and more than 1,300 ATMs nationwide. In addition, BDO has an offshore branch located in Hong Kong and an overseas network of remittance offices, correspondent banks, tie-ups and designated agents spread out across Asia, North America, Europe and the Middle East.

BDO's diverse subsidiaries and investments in allied undertakings provide an extensive range of banking and other financial services. The Company's subsidiaries are as follows: BDO Private Bank, Inc., BDO Leasing & Finance, Inc., BDO Strategic Holdings, Inc., GE Money Bank, Inc., EBC Strategic Holdings Corporation, BDO Capital & Investment Corporation, BDO Technology Center, Inc., Equimark - NFC Development Corp., PCIB Securities, Inc., PCI Realty Corporation, BDO Insurance Brokers, Inc., PCI Express Padala (HK) Ltd., PCIB Europe, S.P.A., Express Padala HK Ltd., Express Padala (USA), Inc., Express Padala Frankfurt GmbH, and Equitable PCI Express Padala (Nederland) B.V.

Source: SEC Form 17-A (2009); The Company (2009)

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BDO sees net income rising 19% to P10.5 B in 2011

Manila, Philippines - Sy-owned Banco De Oro Unibank Inc. (BDO) said it expects its net income to reach P10.5 billion in 2011, 19 percent higher than the P8.8-billion recorded in 2010.

In a presentation yesterday, BDO president and chief executive officer Nestor V. Tan said they expect to meet this target through sustained growth in net interest income.

“Our expectations for 2011 is characterized by moderate loan growth, strong growth in deposits that will feed our loans, sustained growth in fee-based income, and normalized provisioning levels,” he said.

He likewise stressed that the bank is optimistic about strong growth this year since BDO does not rely heavily on non-interest earnings such as securities or foreign currency trading. Eighty-six percent of its operating income come from recurring sources.

Loan growth is forecast to be modest, though Tan said he expects the consumer sector to banner lending.

“Consumer is still the growth sector, including the middle market, and the large corporate sector in both project financing and working capital. Ideally, we would like almost equal share of each sector,” the bank executive said.
‘Podium’ to be expanded

THE SM Group of tycoon Henry Sy has tapped its banking unit to fund up to P3 billion of the five-year redevelopment of the Podium complex in the Ortigas central business district.

“It is still in the planning stage,” Banco de Oro Unibank, Inc. Chairman Teresita Sy-Coson said of plans for the country’s largest bank to spend “P2 billion to P3 billion” for the office tower which is part of the complex’s expansion.

This, after SM Keppel Land, Inc. announced late in April its partnership with BDO Unibank to redevelop the area into a “comprehensive commercial complex.”

SM Keppel is a joint venture of BDO Unibank and listed Keppel Philippines Properties, Inc.

The office tower should be completed in two and a half years to three years with a bulk of the space intended to house the bank’s divisions, Ms. Coson said.
BDO not interested in PBCom

THE country’s largest lender Banco de Oro Unibank Inc. (BDO) isn’t interested in buying the Philippine Bank of Communications (PBCom) and isn’t in talks for other purchases, BDO president Nestor Tan said.

In fact, Tan said BDO plans to cap spending growth at below 10 percent every year while increasing revenue to boost profitability.

“We expect spending growth to slow down, to normalize,” Tan said in an interview at his office on Tuesday. “We have been actually criticized for our spending: that we were spending on infrastructure, on people, on information technology. But the flip side is: Would we have grown at the same pace we’ve been growing if we didn’t put in those investments?”

BDO forecasts net income will climb to a record P10.5 billion this year on rising loans, fees and trading gains. Spending almost tripled from 2006 to 2010, data compiled by Bloomberg show, after the bank added branches and hired more people.

The lender seeks to improve its return-to-equity ratio from 11.7 percent in 2010 in the next few years, Tan said.

“What’s next really is improving our profits further,” Tan said. “We should be in the mid to high teens return-on-equity ratio at today’s interest-rate environment.”

BDO expects to complete its acquisition of the assets of Export and Industry Bank Inc. this year, Tan said.

On May 30 PBCom said Macquarie Group Ltd., an adviser to its controlling shareholders, invited offers from “several banks” to buy shares in the company for a minimum P25 apiece.
This is a confusing and conflicting disclosures today between BDO and PBCOM:

BDO says:

On Philippine Bank of Communications, we did not submit a formal offer. BDO did submit an expression of interest in the transaction subject to further discussions and qualified by certain conditions.

PBCOM says:

We confirm that BDO submit a proposal to invest in PBCOM.

Play of words by two companies. Rolleyes
BDO ready to acquire PBCom

Tuesday, 21 June 2011 20:01 Jun Vallecera / Reporter
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BANCO DE ORO Universal Bank (BDO), the country’s largest, is looking to invest and likely acquire the midsized lender Philippine Bank of Communications (PBCom), which still owes the government a substantial amount of money to keep it going.

PBCom confirmed their colleague’s interest in a disclosure statement to the Philippine Stock Exchange on Tuesday following a printed account claiming that BDO chairman Teresita Sy-Coson was keen on investing in PBCom.

“We confirm that Banco de Oro submitted a proposal to invest in PBCom,” said PBCom corporate secretary Bernard B. Lopez.

The printed account said Coson’s interest was focused on the acquisition of PBCom’s network of 64 branches, which becomes immediately available to the still-expanding BDO empire once the transaction is signed, sealed and delivered whole.

The attraction is best explained by the ongoing moratorium on new bank branches in Metro Manila, its environs and a number of urban places regulators consider overly populated by banks.

Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said the moratorium will remain in place as part of a deliberate effort to encourage more bank presence outside of Metro Manila and key cities around the country.

The moratorium will hold also as part of the larger goal of encouraging consolidation among banks so that they are better able to compete, not just on the national stage but on a regional basis as well.

PBCom still owes the government P7.6 billion when this much money was extended as emergency financial assistance by the Philippine Deposit Insurance Corp. in 2004. This represents a 67-percent controlling exposure in PBCom.

The terms of the assistance require the bank to sell 67 percent of its equity by 2009, which has yet to transpire to this day and reason enough for the bank to hire financial advisers at Macquarie’s.

A group headlined by former Trade Minister Roberto V. Ongpin was also reported as having keen interest in acquiring PBCom.

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BANCO DE ORO UNIBANK. INC. (PSE:BDO) - Potential Bearish Butterfly
BDO bets big on property stocks with REIT trading soon

MANILA, Philippines — The introduction of real-estate investment trusts in the Philippines and peaking inflation will drive a recovery in property stocks, among the country’s worst performers this year, according to Banco de Oro Unibank Inc.

Marvin Fausto, who helps oversee about $12 billion as chief investment officer at Manila-based Banco de Oro, is buying the shares as he expects developers to extend a rally from a first- half slump and boost valuations that are at the cheapest level in two years relative to the Philippine Stock Exchange Index, he said in a July 20 interview.

Banco de Oro is the nation’s largest bank by assets.

Property-related shares including Robinsons Land Corp., the country’s second-biggest mall developer, and Megaworld Corp. account for six of the 10 worst performers this year on the index, which has risen 6.6 percent in 2011 to date, compared with a 1.6 percent drop in the exchange’s property gauge. The industry measure’s price-to-book ratio fell last week to 1.8 times, the cheapest level since August 2009 relative to the benchmark index, according to data compiled by Bloomberg.

“There is now good reason to turn positive toward property stocks,” Fausto said in an interview. “Inflation is expected to peak this quarter, so there’s less pressure for interest rates to go up, plus the government has finalized the rules on REITs,” he said, referring to real-estate investment trusts. Fausto declined to name which stocks he’s buying.

DMCI Holdings Inc., Alliance Global Group Inc. and Ayala Land were the top three holdings in BDO Equity Fund and BDO Institutional Equity Fund at the end of June, according to information sheet on the funds posted on the bank’s website. DMCI is the nation’s biggest provider of construction services, while Alliance is parent of builder Megaworld.

Rising interest rates and a delay in drawing up tax rules for REITs drove the index of property stocks 4.6 percent lower in the first half. The nation’s central bank raised overnight rates twice this year to 4.5 percent and increased the reserve requirement for lenders to 20 percent to curb inflation that in June reached the fastest pace in 26 months.

The property index rallied 47 percent last year as investors bet on the proposed introduction of REITs, which hold properties and typically distribute rental income to investors in the form of dividends.

The measure gained 2.4 percent since July 12, when Philippine Stock Exchange President Hans Sicat said taxation rules had been approved by the government. Finance Secretary Cesar Purisima said on July 14 he had signed regulations paving the way for REIT trading.

Creating the trusts enables developers to raise funds for expansion and “unlock” the value of their assets, Alex Pomento, strategist at Manila-based Macquarie Group Ltd., said. The Philippines has $3 billion worth of “high-grade” property assets that can be put into REITs, Senator Edgardo Angara said last year.

Ayala Land Inc., the nation’s largest property developer, and rivals including SM Prime Holdings Inc. and Robinsons Land have indicated since 2009 their interest in spinning off assets into REITs. Trading of the trusts may begin within a year of tax regulations being completed, Philippine Stock Exchange Chairman Jose Pardo said in May.

BDO, BPI post higher earnings

TWO OF the country's largest banks posted higher earnings in the first semester.
In separate disclosures to the stock exchange this morning, Banco de Oro Unibank, Inc. (BDO) and the Bank of the Philippine Islands (BPI) said they saw their net profit rise by 19% and 12%, respectively, in the first six months of the year.

BDO, the country's largest in terms of assets, said it booked a net income of P5 billion, up from P4.2 billion a year ago. BPI the third largest, said it recorded a net income of P6.2 billion, rising from P5.6 billion a year earlier.

BDO attributed the first-half outcome to its "strong business franchise" and a diversified revenue stream while BPI reported it saw an improvement in both net interest and non-interest income.

BDO shares finished at P64.35 apiece today, gaining 0.62%, while BPI shares closed at P61 each, adding 2.2%.

Chu's point of view: BDO

I see a Potential Bullish Continuation H&S pattern which is retesting the neckline or what they call the return move. Target price is at the same level of the previous high around 73. See the horizontal red line (resistance). Sana it will break that para lang mawala yung possible double top. Your thoughts?

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