MANILA, Philippines – BDO Unibank Incorporated is locking in a new niche of customers: Japanese small- and medium-sized enterprises (SMEs), as well as Japanese residents eyeing the Philippines as a potential investment destination.
The Philippines' largest bank in terms of market capitalization has carried this out through a partnership with Japan’s Shinkin Central Bank.
Shinkin Central Bank functions as the central financial institution in Japan for cooperative regional banks. It occupies a well-established position in Japan’s financial industry as it supports growth of 264 Shinkin banks, which serves SMEs and local residents. (READ: Investors swarm BDO's largest stock rights offering)
BDO told the Philippine Stock Exchange on Tuesday, March 28, that through its business cooperation deal with Shinkin Central Bank, it will be able to service the Japanese bank’s SME clients operating in the Philippines and those eyeing the country as a potential investment destination.
BDO will potentially provide banking services, which include financial facilities, cash management, payment services, foreign exchange, and other treasury products to the Japanese bank’s diversified SME clients.
Hiroshi Sudo, managing director of Shinkin Central Bank, signified confidence that the business partnership between the two banks will be beneficial to and will strengthen further the economic ties between the two countries.
Screenshot from PSE website
"BDO is the most desirable partner which is what our customers are looking for," Sudo said at the recent signing ceremony of the memorandum of understanding.
Aside from nationwide coverage, Shinkin Central Bank has a subsidiary in London and 4 representatives offices in New York, Hong Kong, Shanghai, and Bangkok.
BDO Unibank posted a net income of P26.1 billion in 2016. Its net interest income grew by 15% to P65.6 billion, driven by the 16% growth in gross customer loans to P1.5 trillion.
Deposits grew 15% to P1.9 trillion, primarily in the form of low-cost Current Account, Savings Account (CASA) deposits. – Rappler.com