The Merging and Acquisition of Banco De

Oro and Equitable PCI Bank

By: Venus P. Hernandez
MBA 510
Introduction
The Banking Industry in today’s era has
been experiencing rapid growth and changes.
Many financial institutions feel the urge of
merging and acquiring as a way of competing
with a growing array of strong financial
service providers such as banks, insurance
companies, mortgage companies, etc.
 Background of Banco de Oro
• BDO, known as Acme Savings Bank, was
acquired by the SM Group in 1976. Until 5
August 1996, when it was granted full universal
bank status, the Bank’s main business was
providing traditional loan and deposit banking
services to the middle-market segment,
including corporate suppliers of SM.
• BDO listed its shares in the Philippine Stock
Exchange (PSE) on 21 May 2002. On June 15,
2001, BDO merged with Dao Heng Bank's
Philippine subsidiary, with BDO as the surviving
entity.Dao Heng Bank As of 29 December
2005, Banco de Oro ranked 5th in terms of
resources and loans, 6th interms ofdeposits,
and 8th in terms of capital among the 41
commercial banks in the industry.
 Background of Equitable PCI Bank
• Equitable PCI Bank is a commercial bank
with an expanded banking license. It is the
third largest private domestic bank in the
country in terms of resources, capital,
deposits, and loans. Offering traditional
and innovative deposit products and
services, cash management, international
banking, commercial and corporate banking,
money market, trust and treasury services,
the Bank caters to the needs of corporate,
middle market, and retail clients.
• Combining the individual strengths of
Equitable Bank and PCI Bank, the merger in
1999 created a strong presence insignificant
market segments particularly the corporate
and Filipino-Chinese middle market.
Moreover, Equitable PCI Bank’s extensive
distribution network provides the critical mass
to further fortify the Bank’s position in the
consumer/retail sector as it presents increased
opportunities for cross-selling other retail
products.
 Conclusion
• A merger with EPCI would transform BDO
into a dominant industry player, possessing
market leadership and operational scale
while enhancing shareholder value through
a potential re- rating in the share price and
reduced funding cost.
• “The proposed merger of BDO and EPCI will
create a bigger and stronger institution
which will be among the leaders in the
industry. It also continues the process of
consolidation, which we believe is positive
for the Philippine banking system.
 Conclusion
• “Interbrand helped us with a program to
instill behaviors in our staff that bring our
brand proposition to life. More than a
cultural aspiration, our employees genuinely
practice ‘We find ways’ to help our
customers. They’re engaged and are proud
to work for BDO, always going the extra mile
to ensure that customers receive the best
overall banking experience, and deliver
better results for all stakeholders,”
 Recommendation
• This was an initiative endorsed and led by BDO’s
President and senior leadership. While employee
engagement efforts may start from the bottom up or
within one division, true organizational impact
ultimately requires the support of top leadership.
• Segmenting the workforce similar to segmenting
customers – it’s important to work not only with HR, but
also key business and functional heads to understand
the different needs of diverse employee groups. An
individual working as a bank teller in the provinces will
have different motivations than that of a senior banker
working in head office.
• Move beyond internal communications – emphasize
how to live the brand through actionable behaviors and
link these actions to desired customer experiences.
 Recommendation
• Help internal staff understand the role they play on
the outside. Many back-office function employees
don’t understand or even realize the vital role they
play in delivering and influencing the customer
experience.
• It’s important to generate a sense of momentum
and energy. An effective tactic is to pilot programs
that quickly demonstrate the positive business
impact of engagement.
• Create scalable solutions that can easily be
accessed and delivered through digital channels.
For BDO, Interbrand created an internal
socialization tool that allowed staff at all levels and
all locations to search and share exemplary ‘We
find ways’ success stories.
Thank you very much & Godbless us!!