Philippines’ BDO Unibank (BDO) has inked an agreement to buy One Network Bank (ONB), a Philippines-based rural bank.
The move is part of BDO’s strategy to expand footprint in the fast-developing markets in southern Philippines.
BDO said in a statement, "The addition of ONB to the BDO Group will give BDO access to new market segments in Mindanao and Panay Island, which are among the bank’s targeted growth areas".
Initially, BDO plans to operate ONB as a rural bank and run it as a separate subsidiary, though it can be restructured to meet market needs eventually.
Commenting on the recent acquisition, BDO further said, "The move is also in support of the Bangko Sentral ng Pilipinas’ thrust to promote inclusive banking through countryside branching and lending."
ONB, an inclusive banking proponent, currently comprises 105 branches and micro-banking offices in Mindanao and Panay.
The lender manages total assets of PHP 28.1bn, net loans of PHP 19.7bn, and a deposit franchise of PHP 17.9bn as of September end.