Equitable PCI Bank
Encyclopedia
Equitable PCI Bank was one of the largest bank
s in the Philippines
, being the third-largest bank in terms of assets. With PCI Bank the largest bank before it was overtaken by Metrobank in 1995. It is the result of the merger of Equitable Banking Corporation and Philippine Commercial International Bank, or PCIBank. It was known for a wide range of services from savings to insurance
and, through its wholly owned subsidiary Equitable CardNetwork, was the largest Philippine credit card issuer. The bank merged
with Banco de Oro Universal Bank
in early 2007, and is now branded as "BDO" as its new identity as part of the new Banco de Oro Unibank, Inc.
of which the bank produced Fifteen Witnesses(Along with nine banks namely Citibank, Philippine Savings Bank, Bank of the Philippine Islands, Security Bank, Land Bank of the Philippines, Urban Bank, Export and Industry Bank, United Asia Bank and Keppel Bank) to prove that the 'Jose Velarde' account was owned the President Estrada(which also investment on the merger of the Equitable Banking Corporation and then the Lopez-Gokongwei led Philippine Commercial International Bank).
On August 5, 2005, the SM Group of Companies and Banco de Oro Universal Bank
announced that they have purchased a 24.76% stake of Equitable PCI from the Go family(Equitable Banking Corporation), the family that founded the bank, along with a 10% stake in Equitable CardNetwork. Subsequent acquisitions by Banco de Oro enabled it to gain a 34% share in the bank.
On January 6, 2006, Banco de Oro Universal Bank submitted a merger offer to the bank - with Banco de Oro as the surviving entity. Under the proposed offer, Banco de Oro will swap 1.6 of its shares for every 1 share of Equitable-PCI(Merger occurred but BDO Shareholders were to swap 1.8 BDO shares for every EPCI Share) . As a second option, Banco de Oro also offered to base the swap ratio
on the book values of both banks to be assessed by an independent accounting firm using International Accounting Standards. With the success of this merger, Banco de Oro became the second largest bank with assets of P613 billion, just next to current industry leader, Metropolitan Bank and Trust Company
with assets of more than P641.5 billion. The merger demoted the Bank of the Philippine Islands
down to third place with P582 billion in assets. BDO has since surpassed Metrobank in asset, loan and deposit sizes to become the largest lender in the Philippines.
). Other commercial banks like Bank of the Philippine Islands
were formed and licensed during the Spanish or American regimes. However, it was not until 1955 that Equitable opened its first branch in Divisoria.
In 1958, Equitable established the only direct telex service between the Philippines and Japan at the time, with initial messages exchanged between Equitable and Chase Manhattan Bank of Tokyo.
On August 15, 1963, Equitable established its first branch outside the Philippines in Hong Kong and only International Branch, the first time a Philippine bank opened a branch in the city. Two years later, on March 26, 1965, Equitable opened its first provincial branch in Cebu City. By 1972, Equitable emerged as the country's premier bank.
In 1989, Equitable turned its credit card department into a wholly owned subsidiary, Equitable CardNetwork. With three other banks, namely Far East Bank and Trust Company (since merged with the Bank of the Philippine Islands
, Philippine National Bank
, and United Coconut Planters Bank
, it formed Megalink
, then the Philippines' largest ATM network.
On July 27, 1996, Equitable Savings Bank was established as Equitable's savings bank arm. Equitable listed on the Philippine Stock Exchange on April 3, 1997, and in 1999,
In 1977, the bank received its foreign currency license from the BSP and in 1980, issued its first credit cards under the VISA (credit card)and Visa brand. In 1987, Equitable became a universal bank and was appointed the clearing house of the Makati Stock Exchange, now the Philippine Stock Exchange.
entered the Joint Venture buying about 33% of PCIBank shares then he appointed Rafael Buenaventura to head PCIBank as President and CEO. Also in the 1980's proved hard for the Lopezes because all of their businesses were seized by Pres. Marcos. To this day The Romualdez-Lopez Dispute case still remains at court. Also in the 1980's when Gokongwei entered PCIBank he also owned Far East Bank and Trust Co and talks of a merger surfaced which would have created the largest bank in the Philippines then.
PCIBank formed BancNet along with Security Bank
, Chinabank
, RCBC, Allied Bank
(Merged with PNB), Metrobank, International Corporate Bank (now part of UnionBank), and Citytrust Savings Bank formed BancNet
. BancNet was also the brainchild of one of PCIBank's senior officers Mr. Ramon Arceo Jr. the Senior Vice President(now works as UCPB's President). And due to pressures from President Erap estrada the Lopez and Gokongwei Families sold their shares to the SSS and GSIS and they were auctioned and the victors Equitable Banking Corp a well known crony of the Pres. Estrada had them merged with Equitable as survivor of the merger. PCIBank also had 3 companies listed at the Philippine Stock Exchange namely PCIBank itself(PSE:PCI), Bankard; Now an affiliate of RCBC(PSE:BKD)and PCI Leasing and Finance(PSE:PCIL) now named BDO Leasing and Finance(PSE:BLFI).
After SM Investments Corporation buys the Majority Stake
, Bank of the Philippine Islands
, Land Bank of the Philippines
, and Philippine National Bank
.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, being the third-largest bank in terms of assets. With PCI Bank the largest bank before it was overtaken by Metrobank in 1995. It is the result of the merger of Equitable Banking Corporation and Philippine Commercial International Bank, or PCIBank. It was known for a wide range of services from savings to insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
and, through its wholly owned subsidiary Equitable CardNetwork, was the largest Philippine credit card issuer. The bank merged
Banco de Oro-Equitable PCI Bank merger
The Banco de Oro-Equitable PCI Bank merger was a plan by the SM Group of Companies and Banco de Oro Universal Bank, the fifth-largest bank in the Philippines, to merge with Equitable PCI Bank, the third-largest bank...
with Banco de Oro Universal Bank
Banco de Oro Universal Bank
Banco de Oro Universal Bank , commonly known as Banco de Oro and BDO, is a major bank in the Philippines. It is owned by the SM Group of Companies, one of the country's largest conglomerates and owner of the SM chain of malls...
in early 2007, and is now branded as "BDO" as its new identity as part of the new Banco de Oro Unibank, Inc.
Equitable PCIBank History
The shares of the Lopez and Gokongwei Families were sold to the SSS and GSIS which acquired 78% of PCI Bank shares that were bought by the Go-Led Equitable Banking Corporation and they merged in 1999 and was approved by the Bangko Sentral and other agencies that had created the Third Largest Philippine Bank with Equitable as the survivor of the merger and the name Equitable PCI Bank was adopted. With Head offices at The former PCI Bank Towers I&II that were renamed to the Equitable PCI Bank Towers I&II and the Equitable Banking Corporation Binondo Center and at the Equitable Banking Corporation Tower also in Makati.. The Bank also played in a very important role in the impeachement trial of the former president Joseph EstradaJoseph Estrada
Joseph "Erap" Ejercito Estrada was the 13th President of the Philippines, serving from 1998 until 2001. Estrada was the first person in the Post-EDSA era to be elected both to the presidency and vice-presidency.Estrada gained popularity as a film actor, playing the lead role in over 100 films in...
of which the bank produced Fifteen Witnesses(Along with nine banks namely Citibank, Philippine Savings Bank, Bank of the Philippine Islands, Security Bank, Land Bank of the Philippines, Urban Bank, Export and Industry Bank, United Asia Bank and Keppel Bank) to prove that the 'Jose Velarde' account was owned the President Estrada(which also investment on the merger of the Equitable Banking Corporation and then the Lopez-Gokongwei led Philippine Commercial International Bank).
On August 5, 2005, the SM Group of Companies and Banco de Oro Universal Bank
Banco de Oro Universal Bank
Banco de Oro Universal Bank , commonly known as Banco de Oro and BDO, is a major bank in the Philippines. It is owned by the SM Group of Companies, one of the country's largest conglomerates and owner of the SM chain of malls...
announced that they have purchased a 24.76% stake of Equitable PCI from the Go family(Equitable Banking Corporation), the family that founded the bank, along with a 10% stake in Equitable CardNetwork. Subsequent acquisitions by Banco de Oro enabled it to gain a 34% share in the bank.
On January 6, 2006, Banco de Oro Universal Bank submitted a merger offer to the bank - with Banco de Oro as the surviving entity. Under the proposed offer, Banco de Oro will swap 1.6 of its shares for every 1 share of Equitable-PCI(Merger occurred but BDO Shareholders were to swap 1.8 BDO shares for every EPCI Share) . As a second option, Banco de Oro also offered to base the swap ratio
Swap ratio
An exchange rate of the shares of the companies that would undergo a merger. This is calculated by the valuation of various assets and liabilities of the merging companies....
on the book values of both banks to be assessed by an independent accounting firm using International Accounting Standards. With the success of this merger, Banco de Oro became the second largest bank with assets of P613 billion, just next to current industry leader, Metropolitan Bank and Trust Company
Metropolitan Bank and Trust Company
The Metropolitan Bank and Trust Company , commonly known as Metrobank. It has a diverse offering of financial services, from regular banking to insurance. Metrobank is the second largest bank in the Philippines.-History:...
with assets of more than P641.5 billion. The merger demoted the Bank of the Philippine Islands
Bank of the Philippine Islands
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...
down to third place with P582 billion in assets. BDO has since surpassed Metrobank in asset, loan and deposit sizes to become the largest lender in the Philippines.
Equitable Bank History
On June 17, 1950, Equitable Banking Corporation was founded by Go Kim Pah as the first commercial bank in the Philippines licensed by the newly formed Central Bank of the Philippines (now Bangko Sentral ng PilipinasBangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...
). Other commercial banks like Bank of the Philippine Islands
Bank of the Philippine Islands
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...
were formed and licensed during the Spanish or American regimes. However, it was not until 1955 that Equitable opened its first branch in Divisoria.
In 1958, Equitable established the only direct telex service between the Philippines and Japan at the time, with initial messages exchanged between Equitable and Chase Manhattan Bank of Tokyo.
On August 15, 1963, Equitable established its first branch outside the Philippines in Hong Kong and only International Branch, the first time a Philippine bank opened a branch in the city. Two years later, on March 26, 1965, Equitable opened its first provincial branch in Cebu City. By 1972, Equitable emerged as the country's premier bank.
In 1989, Equitable turned its credit card department into a wholly owned subsidiary, Equitable CardNetwork. With three other banks, namely Far East Bank and Trust Company (since merged with the Bank of the Philippine Islands
Bank of the Philippine Islands
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...
, Philippine National Bank
Philippine National Bank
The Philippine National Bank is one of the largest banks in the Philippines, ranking fourth in terms of assets...
, and United Coconut Planters Bank
United Coconut Planters Bank
The United Coconut Planters Bank, more popularly known by its initials, UCPB, or by its old name, Cocobank, is one of the largest banks in the Philippines, ranking within the top twenty banks in the Philippines in terms of assets. The bank, owing to its name, caters heavily to coconut farmers, but...
, it formed Megalink
MegaLink
MegaLink is an interbank network connecting the ATM networks of nineteen* members in the Philippines with a total of more than 2,921* ATMs nationwide and handling more than 795,000* transactions a day...
, then the Philippines' largest ATM network.
On July 27, 1996, Equitable Savings Bank was established as Equitable's savings bank arm. Equitable listed on the Philippine Stock Exchange on April 3, 1997, and in 1999,
In 1977, the bank received its foreign currency license from the BSP and in 1980, issued its first credit cards under the VISA (credit card)and Visa brand. In 1987, Equitable became a universal bank and was appointed the clearing house of the Makati Stock Exchange, now the Philippine Stock Exchange.
PCIBank History
PCIBank was established on July 8, 1938 as the Philippine Bank of Commerce by sugar farmers from the Visayas region then it was the first Filipino-owned private commercial bank in the country. Then in the 1960's Benpres Holding Corp(now Lopez Holdings Corporation) bought out the majority stake in the PBC and they renamed it to the Philippine Commercial and Industry Bank(PCIBank). Then in the 1980's the Gokongwei Group headed by taipan John GokongweiJohn Gokongwei
John L. Gokongwei, Jr. is a Chinese Filipino businessman with holdings in telecommunications, financial services, petrochemicals, power generation, aviation and live stock farming...
entered the Joint Venture buying about 33% of PCIBank shares then he appointed Rafael Buenaventura to head PCIBank as President and CEO. Also in the 1980's proved hard for the Lopezes because all of their businesses were seized by Pres. Marcos. To this day The Romualdez-Lopez Dispute case still remains at court. Also in the 1980's when Gokongwei entered PCIBank he also owned Far East Bank and Trust Co and talks of a merger surfaced which would have created the largest bank in the Philippines then.
PCIBank formed BancNet along with Security Bank
Security Bank
Security Bank , more formally known as Security Bank Corporation and abbreviated as SBC, is one of the largest commercial banks in the Philippines. It is one of the twenty largest banks in the Philippines in terms of assets.-History:...
, Chinabank
Chinabank
China Banking Corporation , known publicly as China Bank is Philippines' fourth largest universal bank by market capitalization. Established in 1920, it is the first privately-owned commercial bank in the Philippines. It is likewise the first bank in Southeast Asia to process deposit accounts...
, RCBC, Allied Bank
Allied Bank
Allied Bank, formally known as Allied Banking Corporation, is one of the largest banks in the Philippines, ranking tenth in terms of assets...
(Merged with PNB), Metrobank, International Corporate Bank (now part of UnionBank), and Citytrust Savings Bank formed BancNet
BancNet
Bancnet, Inc. is a Philippine-based interbank network connecting the ATM networks of more than forty local banks. It is considered the largest interbank network in the Philippines in terms of the number of member banks and annual transactions...
. BancNet was also the brainchild of one of PCIBank's senior officers Mr. Ramon Arceo Jr. the Senior Vice President(now works as UCPB's President). And due to pressures from President Erap estrada the Lopez and Gokongwei Families sold their shares to the SSS and GSIS and they were auctioned and the victors Equitable Banking Corp a well known crony of the Pres. Estrada had them merged with Equitable as survivor of the merger. PCIBank also had 3 companies listed at the Philippine Stock Exchange namely PCIBank itself(PSE:PCI), Bankard; Now an affiliate of RCBC(PSE:BKD)and PCI Leasing and Finance(PSE:PCIL) now named BDO Leasing and Finance(PSE:BLFI).
Ownership
Before Merging with Banco De Oro- PCD Nominee CorporationPCD Nominee CorporationPCD Nominee Corporation is a wholly owned subsidiary of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines...
: 2.31% - Go Family : 24.76%
- Government Service Insurance System (Philippines): 12.7%
- Social Security SystemSocial Security System (Philippines)The Philippine Social Security System is a social insurance program for workers in the Philippine private sector.-Reference:*...
: 29% - Trans Middle East Philippines Equities: 7.13%(The Company of Former Chairman Martin Romualdez)
- Shoemart: 2.15%
- EBC Investments: 10.48%
- Public stock: 6.81%
After SM Investments Corporation buys the Majority Stake
- SM Investments Corporation: 85.6%
- Trans Middle East Philippines Equities: 7.13%(The Company of Former Chairman Martin Romualdez)
Competition
Equitable PCI Bank's main competitors included MetrobankMetropolitan Bank and Trust Company
The Metropolitan Bank and Trust Company , commonly known as Metrobank. It has a diverse offering of financial services, from regular banking to insurance. Metrobank is the second largest bank in the Philippines.-History:...
, Bank of the Philippine Islands
Bank of the Philippine Islands
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...
, Land Bank of the Philippines
Land Bank of the Philippines
Land Bank of the Philippines , also known as LANDBANK or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen...
, and Philippine National Bank
Philippine National Bank
The Philippine National Bank is one of the largest banks in the Philippines, ranking fourth in terms of assets...
.
Firsts
- A Member both of the two leading ATM Networks in the PhilippinesPhilippinesThe Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
; Equitable Bank's MegalinkMegaLinkMegaLink is an interbank network connecting the ATM networks of nineteen* members in the Philippines with a total of more than 2,921* ATMs nationwide and handling more than 795,000* transactions a day...
of which it is a founding member and PCIBank's BancNetBancNetBancnet, Inc. is a Philippine-based interbank network connecting the ATM networks of more than forty local banks. It is considered the largest interbank network in the Philippines in terms of the number of member banks and annual transactions...
of which it is the BancNet Operator along with Metrobank and RCBC.
See also
- BancNetBancNetBancnet, Inc. is a Philippine-based interbank network connecting the ATM networks of more than forty local banks. It is considered the largest interbank network in the Philippines in terms of the number of member banks and annual transactions...
(The PCI Bank ATM Network) - MegalinkMegaLinkMegaLink is an interbank network connecting the ATM networks of nineteen* members in the Philippines with a total of more than 2,921* ATMs nationwide and handling more than 795,000* transactions a day...
(The Equitable Banking Corporation ATM Network) - ExpressnetExpressnetExpressnet is an interbank network connecting the ATM networks of seven major banks in the Philippines. It is the second-largest ATM network in terms of number of ATMs and the smallest in terms of customers and number of member banks...
(The BDO ATM Network) - Banco de Oro
- Banco de Oro-Equitable PCI Bank mergerBanco de Oro-Equitable PCI Bank mergerThe Banco de Oro-Equitable PCI Bank merger was a plan by the SM Group of Companies and Banco de Oro Universal Bank, the fifth-largest bank in the Philippines, to merge with Equitable PCI Bank, the third-largest bank...
- Banco de Oro Universal BankBanco de Oro Universal BankBanco de Oro Universal Bank , commonly known as Banco de Oro and BDO, is a major bank in the Philippines. It is owned by the SM Group of Companies, one of the country's largest conglomerates and owner of the SM chain of malls...
- Equitable Banking Corporation
- Far East Bank and Trust Company (PCIBank's Sister Bank; Acquired by BPI)
- Bank of Commerce(Equitable Bank's Sister Bank;Now a member of the San Miguel Group of Companies)
- List of Philippine companies
- MegaLinkMegaLinkMegaLink is an interbank network connecting the ATM networks of nineteen* members in the Philippines with a total of more than 2,921* ATMs nationwide and handling more than 795,000* transactions a day...