BDO UNIBANK, Inc. has partnered with a Japanese regional bank to help Japanese firms enter the Philippine market.
In a regulatory filing on Monday, the Sy-led lender said Bank of Fukuoka, Ltd. (BoF), Japan’s third-largest regional bank, has chosen BDO as its partner-bank in the Philippines.
The partnership, which was sealed through a memorandum of agreement, is aimed to service BoF’s clients who wish to expand their businesses or put up shops in the country.
BDO noted the deal is the first time a Japanese regional bank (JRB) in the Kyushu region is partnering with a Philippine lender.
Founded in 1942, BoF has 170 branches and representative offices in Dalian, Shanghai, Hong Kong, Taipei, Bangkok, Singapore, Ho Chi Minh City and New York.
BDO earlier inked partnerships with Awa Bank, Ltd., Chiba Kogyo Bank, Ltd., Daisan Bank, Ltd., Hokuto Bank, Ltd., Joyo Bank, Ltd., Juroku Bank, Ltd. and Shonai Bank, Ltd. in August 2013 “to support Japanese mid-tier companies and [small and medium enterprises] interested in operating in the Philippines.”
The local bank also signed a deal with commercial lender Aozora Bank, Ltd. in May 2016.
“These JRBs are serving as conduits of their clients which are currently doing business in the Philippines or eyeing the country as their next business hub,” BDO added.
The partnerships were considered a byproduct of the previous memorandum of understanding signed by BDO with the Japan Bank for International Cooperation “promoting the development and strengthening of a framework to support Japanese mid-tier companies as well as SMEs through JRBs.”
BDO also has an established and fully staffed Japan Desk dedicated to market and service Japanese firms operating in the country and service the retail requirements of customers there.
BDO’s net profit was little changed in the first quarter at P5.9 billion, slightly higher than the P5.8 billion it booked the same period last year.
Shares in the Sy-led bank lost P2 or 1.47% to close at P134 apiece on Monday. — Karl Angelo N. Vidal