Case: Banco De Oro

Case: Banco de Oro (please include the title we used in the presentation)

Background of BDO

        SM group of company had become successful in business industry starting from shoe seller and emerged into various entities such as commercial centers, retail and merchandising, financial services, and real estate. Banco De Oro (BDO) is their banking arm; they provide corporate, commercial, and retail banking services. Their services includes trading loans and deposit products, as well as treasury, trust banking, investment banking, cash management, insurance, retail cash cards, and credit card services. Leading a full-service bank in selected in the Philippines was their strategy evidenced by their significant growth in 2000-2004. With the guidance of their president, Mr. Nestor Tan they had accomplished this through offering products and services and, to a lesser intent, acquiring banks including the brank licenses and bank customers. They expanded their network of branches in the Philippines, as of October 2011 they have 740 domestic operating branches and 1,545 ATMs, and they had maintained their position as the industry leader in terms of assets, trust assets, gross customer loans and deposits. Their mission statement indicates that they are committed to their customers, organization, employees and shareholders.

The bank’s business units which contributed to their success in the industry were: Account Management, International Banking, Customer Lending, Treasury, Investment Banking, Trust Banking, Transaction Banking, and Branch Banking. The Account Management is responsible for managing the corporate loan portfolio of the bank. Customer Lending offers a wide range of customer finance product including personal loans, residential mortgage, auto loans, and credit cards services. Treasury group is primarily responsible for managing the bank’s sources of funding and tasked with ensuring that the bank has adequate liquidity at all times. Investment Banking was established to address the capital raising needs of the bank’s larger corporate and institutional accounts, the government-owned and controlled corporate and more sophisticated investors, including high net worth individuals, fund managers, and other institution. Trust Banking provides services which includes retirement and employee benefit plans, investment management and advisory services, trust agreement, wealth planning, custodianship services, and other collateral agency services. Transaction Banking provides a range of transaction-based services which also have a goal of becoming major revenue contributor, particularly with regard to building long-term value and consistent earnings growth through multi-product relationship with customer. Lastly, Branch Banking offers deposit services to customers, including current accounts (interest and non-interest bearing demand deposits), savings accounts, and time deposits in pesos, US dollars, and other foreign currencies.