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Banco De Oro Unionbank (BDO) has a network of more than 700 branches nationwide at present, but it is still keen on expanding its presence further in areas currently restricted to the opening of new bank branches. The Bangko Sentral ng Pilipinas (BSP) has suspended the issuance of new branch licenses in key urban areas to encourage consolidation within the banking system, this has been implemented since the term of former BSP Governor Rafael Buenaventura.

To sustain its expansion despite the limitation on new branch licenses, BDO is looking to acquire a controlling stake in Export and Industry Bank, which has been on selling block for quite a while now. BDO is working on a new deal to take over the commercial bank.

BDO chair Teresita Sy replied when she was asked about the deal, “I know there has been exploratory discussion, but I don’t think it’s in the final stage. There are discussions on some items on the table, but I don’t know when there will be an agreement. We explore because we need branch license. If there’s an acquisition possibility, we like to check.”

EIB has about P32 billion in total resources, P9.4 billion in net loan portfolio and P16 billion in deposits. BDO currently leads banks in the Philippines at P793.47 billion in consolidated resources, but Metropolitan Bank and Trust Co. (Metrobank) is only P26 billion away at P767.67 billion in resources, based on the two banks’ statement of financial conditions as of June. Should BDO be successful in its takeover of EIB, it will cement its leadership in the banking industry.

EIB chair Jaime Gonzales, for his part said, “Our discussions with the potential investors are proceeding very well and we expect to make a decision very soon.”

The Rizal Commercial Banking Corporation (RCBC) was earlier reported to be in an “advanced” stage of negotiations with EIB shareholders.