Philippines’ ChinaBank takes majority ownership in Plantersbank

ChinaBank will acquire of two-thirds of Plantersbank’s shares.

China Banking Corporation has signed a memorandum of agreement that will see it acquire a majority stake in Planters Development Bank. The deal is subject to shareholders and regulatory approvals, however.

Plantersbank is the Philippines’ largest private development bank and leading bank for small and medium enterprises with total assets of US$1.2 billion as of May 2013. It has a total loan portfolio of US$760 million and deposits of US$998 million.

Analysts said the Plantersbank deal boosts ChinaBank's strategy in growing the middle market and its SME portfolio. ChinaBank has a total network of 333 branches with 544 ATMs nationwide. The group will now have a combined network of at least 411 branches.