Beruflich Dokumente
Kultur Dokumente
Submitted by:
Baquial, Razel Ann Marie S.
Cuaresma,Jonna Cyle C.
Masayon, Mary Apple Jane
Pahamtang, Karen Michelle P.
Villaester, Don Laurence B.
Submitted to:
Lorelei Pabillore, MBA
March 6, 2014
I.
II.
Objectives
To determine the effect of the merger to PCI bank, its pros and cons.
To determine the effect of the BDO-PCI bank merger to the Philippine economy
and to the banking business.
III.
Areas of Consideration
At the time of merger PCI is the 3rd largest bank and BDO is the 5th largest bank
in terms of asset in the Philippines and PCI had almost three times the capital
BDO.
Equitable PCI Bank was known for a wide range of services from savings
to insurance and, its wholly-owned subsidiary Equitable CardNetwork, was the
largest Philippine credit card issuer. It received many awards and recognitions
since the time it was established.
In the late 90s PCI was known to be the most aggressive bank in terms of
acquisition and merger but then in 2000, BDO became the most aggressive.
Equitable PCIs debt rating is currently a B and Banco de Oro has a B+ rating.
Since 2004, BDO wanted to merge with PCI; it was only successful on December
2006 with the formation of Banco de Oro Unibank, Inc.
IV.
Disadvantages:
Conclusion/Recommendation
The group concludes that the merger of Equitable Philippine Commercial
International Bank (Equitable PCI Bank) and Banco de Oro Universal Bank (BDO) is
beneficial to Equitable PCI Bank, the merger resulted to Banco de Oro Unibank which
became the 2nd largest bank after the merger and now known as the 1 st largest bank in
the Philippines. The merger created a powerhouse institution with a major presence in
business lines such as retail banking, asset management, foreign exchange remittances,
credit cards, and underwriting which benefited the economy of the Philippines. The only
loophole in the merger is the vanishing of Equitable PCI Banks name which took the
company years to establish and is renowned in the banking industry. Though the
company name is gone its substance is still present which the group believed
contributed to the success of the Banco de Oro Unibank.