BDO Unibank completes Citibank Savings acquisition

(Updated 7:14 p.m.) Sy-led BDO Unibank Inc. will now have a thrift bank after it completed the acquisition of Citibank Savings Inc.

In a disclosure to the Philippine Stock Exchange Wednesday, BDO said Citibank Savings is the latest addition to the BDO group of companies.

"CSI is a savings bank with 10 active branches and will be renamed Banco De Oro Savings Bank Inc.," the disclosure read.

The acquisition enables BDO to further strengthen its market reach and client coverage through its expanded branch network, Luis S. Reyes Jr., senior vice president and investor relations and corporate planning head, said in an e-mail response to GMA News Online.

He said this was not the first time BDO acquired a savings bank.

"BDO acquired Amex Savings in 2007, GE Money in 2009 and Rural Bank of San Juan in 2012," he said.

The acquisition of Citibank Savings will definitely increase BDO's total resources and grow further its loans and deposit segment, said Abbygayle Estrella, AB Capital Securities Inc. analyst for banks.

"This solidifies its position as a top banking institution in the country. It has private banking, consumer banking, capital investment arm and now a thriftbank," she said.

"It can now focus on microfinancing for small and medium enterprises," she added.

Last November, BDO said it signed a definitive agreement to acquire Citibank Savings – Citi’s thrift bank subsidiary in the Philippines. – VS, GMA News