Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

Henry Sy buys Manila Bank

Posted on June 23, 2007

PHILIPPINE NEWS SERVICE — CHINA Banking Corp. is buying 87.51 percent of the Puyat family’s Manila Banking Corp. at a price to be determined next month after due diligence, an official said yesterday.

China Bank, controlled by the family of retail magnate Henry Sy, plans to merge with Manila Bank to expand its branches to 230 from the 155 now, according to Peter Dee, the bank’s president and chief executive.

A merger requires the approval of the Securities and Exchange Commission and the central bank and a 67-percent vote from both banks’ stockholders. China Bank and Manila Bank officials signed the agreement to merge Thursday.

Dee said acquiring Manila Bank would allow China Bank to bring its branch network to 250 eventually.

“With a bigger footprint and network through which we can sell and distribute our full range of products and services, we are now in a better position to compete more effectively with the bigger competitors in the banking industry,” he said.

Last year, Manila Bank’s assets stood at P10.2 billion of which P4 billion were in real estate and other foreclosed assets. Its deposits stood at P5.2 billion, and its loans amounted to P4.4 billion.

China Bank’s assets stood at P156 billion in the same period, with its loans amounting to P44 billion and its deposits totaling P121 billion.

The bank reported a net income of P3.54 billion, or a return on equity of 15.93 percent and a return on assets of P2.47 billion. Its capital adequacy ratio, a measure of a bank’s financial health, stood at 28.25 percent—higher than the 10 percent required by regulators.

China Bank is pursuing a three-year plan to boost lending and expand its branch network even as it is bracing itself for the impact of Basle 2, the stricter banking standards that the central bank is implementing next month.

In a statement, Manila Bank chairman Luis Puyat cited intense competition as among the reasons the family was divesting from the business. It sold to China Bank because of its strength, financial stability, loyal customers and sustained profitability, he said.

“The rapidly changing landscape of the Philippine banking industry has made it tougher for smaller banks to compete,” Puyat said.

“It was a difficult decision for the family to let go a business we have painstakingly built over the years.”

Manila Bank has 75 branches—41 in Manila and 34 in the provinces—but only 27 are operating.

Puyat said they were pleased with the role that their bank would play in China Bank’s bid to become a stronger player in the industry.

China Bank chairman Gilbert Dee expressed gratitude to the Puyat family for entrusting Manila Bank to them.

“We consider this deal a strong recognition of the inherent strengths of China Bank and the strong future that this combination of resources would mean for our combined client base,” China Bank vice chairman Hans Sy said.

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme