January 19, 2014

China Bank pays P1.86b for Plantersbank

China Banking Corp. (CHIB) disclosed that it will pay P1.86b for its acquisition of 100% of Plantersbank. With the acquisition, CHIB will be the fifth largest private universal bank with P410b in assets. Furthermore, the acquisition will add 78 branches to bringing CHIB‟s network to 448 branches. The move will also allow CHIB to expand its SME portfolio and geographic foothold.

Our Take: Aside from increasing CHIB's size and market presence, the acquisition and possibly the eventual merger with Plantersbank will allow CHIB to diversify its loan portfolio. CHIB has an already established clientele which is focused on corporates, while Plantersbank is the leading bank for SMEs. – WealthSec