San Miguel to install Bank of Commerce ATMs in Petron stations

MANILA, Philippines - San Miguel Corp. (SMC) is planning to install automated teller machines (ATMs) of lender Bank of Commerce (BoC) in all Petron Corp. gasoline stations nationwide. This was confirmed by San Miguel president Ramon S. Ang in a text message to GMANews.TV. The company is still planning to install “ATMs in gas stations," Ang said. The move will boost BoC’s position – it is currently the 15th largest in terms of assets – helping it become a major player in the sector. Besides controlling 51 percent of Bank of Commerce, the food conglomerate is currently seeking to complete a deal to acquire about 51-percent stake in Petron from a foreign investment fund. San Miguel acquired a 51 percent stake in BoC through its property arm, San Miguel Properties Inc., and San Miguel’s retirement fund after it infused an additional P2 billion in equity in May. San Miguel is pursuing the right strategy in boosting BoC's position by putting up cash machines in Petron stations, an analyst said. As of end 2008, Petron has about 1,300 stations. “It is a wise decision to start with ATMs in gas stations. With more ATMs, we can expect more depositors of BoC," Claire Quiray of Regina Capital said. At the same time, the food conglomerate must also complement this strategy by putting up additional bank branches. “To be a major player, a bank must be visible to the public, just like Banco de Oro (BDO). Last time I looked at the resources of banks, Metrobank (Metropolitan Bank & Trust Co.) had the largest resources but because BDO was the most visible and presumably the largest number of branches and ATMs, it was identified as the country's largest lender," Quiray said. BDO is considered as the largest Philippine lender, as indicated by data available in the Bangko Sentral ng Pilipinas (BSP) website. The food company may have to resort to acquisition if it wants BoC to become a major industry player. Acquisition “has been the strategy of banks here in the Philippines," said Quiray. San Miguel’s businesses would also benefit from the partnership between the gas retailer and the bank, she added. If it is allowed to handle the payroll of San Miguel and its subsidiaries, the lender would give off the impression that “it could be trusted," Quiray said. “San Miguel also needs a banking partner to handle its payroll requirements and other lending needs." On Monday, San Miguel said it would strengthen BoC’s capital and pursue a three-pronged strategy to further grow the bank. [See related story here] - GMANews.TV