By Aaron Michael C. Sy, Reporter
BDO Network Bank, Inc., the rural banking arm of listed BDO Unibank, Inc., expects to end the year with more than 70 additional branches as it looks to reach more underserved areas.
“I have about another 20 or so more branches to open this December. So, we’ll end the year at around 560 to 570 branches,” BDO Network Bank President Jesus Antonio S. Itchon told reporters at the sidelines of an event on Wednesday.
This would bring the additional BDO Network Bank branches opened this year to more than 70. Next year, Mr. Itchon said they want to put up more new branches to possibly exceed this year’s number.
BDO Network Bank is targeting tourist destinations for its branch expansion, he said.
“What happens is, when we open a branch, the investors who are putting up resorts are encouraged. So, we actually are able to help the investors invest more easily into the area,” Mr. Itchon said.
The new branches would also help boost connectivity and infrastructure in far-flung areas, he added.
“Well, let me just say I define the market we’re going after as underserved, and it’s underserved in infrastructure and banking. For those that have signal and all, that’s fine. But there’s a big part of the country that doesn’t have that. So, that’s where we are. In fact, I think we have about 40 or so locations where we have to connect through Starlink. There’s no landline or mobile,” he said.
Despite the banking industry’s increasing digitalization, physical branches remain important in rural areas that have little to no internet infrastructure, Mr. Itchon said, as having a brick-and-mortar presence also helps build trust with new customers.
“The underserved communities are not just underserved by the banks. There’s no internet, there’s no WiFi, or no cell signal. So, how can you depend on digital to do financial inclusion? So, we need to provide access — physical access. And we have to be there,” he said.
“Financial inclusion needs access, and the access for our markets needs physical touch. We need to put people on the ground. That’s why we’ve been opening branches,” Mr. Itchon added.
BDO Network Bank, formerly One Network Bank, Inc., was the biggest rural lender in the country in terms of assets as of end-June with P113.8 billion.
BDO took over One Network Bank in 2015 in a transaction valued at P6.7 billion.
Based on its annual report, BDO Network Bank posted a net income of P884.4 million in 2023, down 22% from P1.134 billion in 2022. It had 393 branches, 121 loan offices, and 431 automated teller machines at end-2023.
Meanwhile, its listed parent BDO’s net income grew by 13.26% year on year to P21.18 billion in the third quarter, driven by the continued growth of its core businesses.
This brought its nine-month net profit to P60.62 billion, climbing by 12.47% from a year ago.
BDO was the largest Philippine bank in terms of assets as of June with P4.508 trillion.
Its shares rose by 20 centavos or 0.13% to end at P155.90 apiece on Thursday.
