De La Salle University Graduate School of Business
in SM with the use of BDO credit cards. Part of the general administration activities of the Bank is the improvement of management information systems and corporate governance policies. In 2010, Banco de Oro has begun collaborating with the International Finance Corporation (IFC) to finance sustainable-energy projects in the Philippines. Coordination of lending programs between BDO and IFC is essential in order to bring down lending costs of potential borrowers since IFC will provide a 50% guarantee for loans drawn for sustainableenergy projects.
3.4 Strengths and Weaknesses Strengths: Strengths are internal capabilities which enhance the company‘s competitiveness in the industry.
Nationwide branch and ATM network Basis: Value Chain – Distribution and Financial Ratios (Leverage Ratios) In 2010, Banco de Oro boasts of having 726 branches and 1,430 automated teller machines nationwide. In the past 5 years, the Bank has expanded its physical distribution channels in order to fully provide financial services to its market. Distribution of branches is now shifting to the provincial areas where growth is expected The wide network of branches and ATM‘s is also traceable to BDO‘s financial capability to fund acquisitions of other banks. From the year 2000, Banco de Oro completed acquisitions of financial institutions such as Equitable-PCI Bank, GE Money Bank, American Express Savings Bank, Dao Heng Bank (Philippine subsidiary), 1
st
e-Bank, Banco Santander, and United
Overseas Bank (Philippine branch). Market capitalization of the Bank (as of August 2011) stood at PhP149 Billion, which the company can use to acquire other smaller banks.
Strong Alliance with other members of the SM Group Basis: Value Chain – General Administration Banco de Oro is a proud member of the SM Group, one of the largest business conglomerates in st
the Philippines. Started by Mr. Henry Sy, Sr. in 1972 (opening of his the 1 Shoemart Department Store), the SM Group has expanded operations into mall operations, retail, property development, financial services, and hotel and entertainment. The synergies achieved by BDO with other members of the SM Group through collaborative programs and activities have enabled the Bank to develop brand awareness and large customer base. Further, major acquisitions and mergers initiated by BDO in the past have been supported by the group, through SM Investments Corporation, with market capitalization of PhP328 Billion as of August 2011.
Alliance with the International Finance Corporation (IFC) Basis: Value Chain – General Administration
Banco De Oro Unibank, Inc. UDARBE, John Paul F. - 10981241
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