Malaysian sovereign fund, Khazanah Nasional Bhd. recently bought two percent of BDO Unibank Inc. for about P7.9 billion.
The Malaysian fund bought the two percent stake of an SM unit, Multi-Realty Development Corp. in BDO.
Khazanah bought about 71.62 million shares of BDO.
SM Investments Corp. said the entry of the Malaysian fund will strengthen BDO’s shareholder base. This also signals BDO’s potential in the region, given its industry-leading business franchise, strong balance sheet, and good corporate governance.
SMIC business interests are in property (SM Prime Holdings Inc.), banking (BDO Unibank Inc.) and retail (SM Retail Inc.). It also has affiliates such as China Banking Corp. and casino and entertainment firms Belle Corp. and Premium Leisure Corp.
BDO also reported yesterday that it is buying One Network Bank Inc. (ONB), a leading thrift and rural bank in Panay and Mindanao with 105 branches and micro-banking offices.
BDO said the ONB acquisition will give its clients access to new market segments, as well as to create new opportunities for growth in Mindanao and Panay. ONB is a profitable business franchise through the years, providing over 20 percent returns to its shareholders.
The move is also in support of the Bangko Sentral ng Pilipinas (BSP) thrust to promote inclusive banking through countryside branching and lending, BDO said, citing its plan to expand product offering to underserved sectors of the economy.
As of end-September, ONB’s total assets amount to P28.1 billion, while net loans reach P19.7 billion and a deposit franchise accounting to P17.9 billion.
BDO said it is on track in achieving its full year 2014 target of P22.8 billion net income as its net income went up by 41 percent in July to September period. Its nine months net income, on the other hand, declined to P16.8 billion from P18.2 billion a year ago on lack of one time extraordinary gains in early 2013.