Bank of Commerce
Encyclopedia
Bank of Commerce, also known as BankCom, Bancommerce and BoC, is a commercial bank and the 15th largest lender by asset in the Philippines
. Its headquarters is at the San Miguel Properties Center, No. 7 Saint Francis Avenue, Mandaluyong. It is affiliated with the San Miguel Corporation
group.
Evolving from history of mergers and acquisitions in 1981, Government Service Insurance System (Philippines)
acquired Commercial Bank of Manila from the Herdis group and used ComBank as the bank's acronym. In 1987, the First National Bank of Boston (one of the oldest and leading banks in the United
States) joined a group of Filipino entrepreneurs to acquire Combank in response to the privatization thrust of the Philippine government and renamed the bank as the Boston Bank of the Philippines.
A group of Filipino investors – leaders in fields of communications, stock market and brokerage, pre-need services and banking and finance–reinforced the ownership base of the Bank.
Bank of Commerce was established on November 28, 1991. Initially the bank focused on Trade Finance
Transactions and strengthening other fee based income capabilities such as Trust Operations.
In 1993, upon the completion of the buyout of the majority interest of the First National Bank of Boston. The Bank formulated what was to be its long term vision and corporate mission.
By year 2000, as the Bangko Sentral ng Pilipinas
encouraged fewer but bigger players in the banking industry, the bank initiated its first step towards a 3 way merger. By September, the bank acquired Pan Asia Bank, Inc. A year after (2001), Bank of Commerce purchased selected assets and liabilities of Trader's Royal Bank paving the way for the takeover of all the branches thereby expanding the branch network to 112. The Monetary Board also approved in principle the bank's acquisition of Urban Bank.
In 2005, the bank embarked in Tier 2
capital raising efforts and asset quality enhancements. The same year the bank formed ties with Republic of Equatorial Guinea providing the technical support needed in organizing the country's first National Bank.
announced that 7 Philippine banks have $
386M in exposure to Lehman Brothers
. Bank of Commerce was one of those affected having $
15 million in exposure to the bankrupt US investment banking giant but the bank’s exposure was fully provided for as with the other affected banks.
through its property arm San Miguel Properties Inc., and San Miguel Corporation Retirement Fund signed a 34.3% subscription agreement with Bank of Commerce which was approved by the Monetary Board May of succeeding year.
On April 2008, San Miguel Corporation
via its property arm San Miguel Properties Inc., and San Miguel Retirement fund signed another subscription agreement with Bank of Commerce giving the combined stake in the bank to 51.1% and was secured last May 2009.
Around April 2010, San Miguel Corporation
planned on divesting its San Miguel Properties Inc's 31% stake in the bank and was eventually sold to the San Miguel Corporation Retirement Fund making the latter the controlling shareholder with 51.1% stake on the bank. The proposal was done to counter the regulatory limits imposed on shareholders of the bank
.
During the early part of 2011, San Miguel Properties Inc (the real estate arm of conglomerate San Miguel Corporation
) acquired 7.16% interest in the bank thereby increasing the San Miguel group's stake to 58.2%.
. The leaves signify growth and regeneration; the droplets signify clarity and transparency and lastly, the escudo
of San Miguel Corporation
which symbolizes a partnership of strength and dependability.
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...
. Its headquarters is at the San Miguel Properties Center, No. 7 Saint Francis Avenue, Mandaluyong. It is affiliated with the San Miguel Corporation
San Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
group.
Early Years
Historically, the bank traces its origins to the Overseas Bank of Manila, which was incorporated in December 1963.Evolving from history of mergers and acquisitions in 1981, Government Service Insurance System (Philippines)
Government Service Insurance System (Philippines)
The Government Service Insurance System is a government-owned and -controlled corporation in the Republic of the Philippines. Created by Commonwealth Act No...
acquired Commercial Bank of Manila from the Herdis group and used ComBank as the bank's acronym. In 1987, the First National Bank of Boston (one of the oldest and leading banks in the United
States) joined a group of Filipino entrepreneurs to acquire Combank in response to the privatization thrust of the Philippine government and renamed the bank as the Boston Bank of the Philippines.
A group of Filipino investors – leaders in fields of communications, stock market and brokerage, pre-need services and banking and finance–reinforced the ownership base of the Bank.
Bank of Commerce was established on November 28, 1991. Initially the bank focused on Trade Finance
Trade finance
Trade finance is related to international trade.While a seller can require the purchaser to prepay for goods shipped, the purchaser may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support...
Transactions and strengthening other fee based income capabilities such as Trust Operations.
In 1993, upon the completion of the buyout of the majority interest of the First National Bank of Boston. The Bank formulated what was to be its long term vision and corporate mission.
By year 2000, as the Bangko Sentral ng Pilipinas
Bangko 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...
encouraged fewer but bigger players in the banking industry, the bank initiated its first step towards a 3 way merger. By September, the bank acquired Pan Asia Bank, Inc. A year after (2001), Bank of Commerce purchased selected assets and liabilities of Trader's Royal Bank paving the way for the takeover of all the branches thereby expanding the branch network to 112. The Monetary Board also approved in principle the bank's acquisition of Urban Bank.
In 2005, the bank embarked in Tier 2
Tier 2
Tier 2 may refer to:* Tier 2 capital* Tier 2 network or carrier* Tier 2 Vehicle and Gasoline Sulfur Program; see United States emission standards* Tier Two, orbital human spaceflight program...
capital raising efforts and asset quality enhancements. The same year the bank formed ties with Republic of Equatorial Guinea providing the technical support needed in organizing the country's first National Bank.
Lehman Brothers' exposure
On September 17, 2008, 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...
announced that 7 Philippine banks have $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
386M in exposure to Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
. Bank of Commerce was one of those affected having $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
15 million in exposure to the bankrupt US investment banking giant but the bank’s exposure was fully provided for as with the other affected banks.
San Miguel Corporation funding
On October 2007, San Miguel CorporationSan Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
through its property arm San Miguel Properties Inc., and San Miguel Corporation Retirement Fund signed a 34.3% subscription agreement with Bank of Commerce which was approved by the Monetary Board May of succeeding year.
On April 2008, San Miguel Corporation
San Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
via its property arm San Miguel Properties Inc., and San Miguel Retirement fund signed another subscription agreement with Bank of Commerce giving the combined stake in the bank to 51.1% and was secured last May 2009.
Around April 2010, San Miguel Corporation
San Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
planned on divesting its San Miguel Properties Inc's 31% stake in the bank and was eventually sold to the San Miguel Corporation Retirement Fund making the latter the controlling shareholder with 51.1% stake on the bank. The proposal was done to counter the regulatory limits imposed on shareholders of the bank
.
During the early part of 2011, San Miguel Properties Inc (the real estate arm of conglomerate San Miguel Corporation
San Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
) acquired 7.16% interest in the bank thereby increasing the San Miguel group's stake to 58.2%.
Logo
The new logo uses the previous logo of San Miguel Corporation, it embodies the ideals of the Bank of Commerce after acquisition from San Miguel CorporationSan Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
. The leaves signify growth and regeneration; the droplets signify clarity and transparency and lastly, the escudo
Escudo
The escudo is a unit of currency. Historically it was used in Portugal and in its colonies, and is still used in Cape Verde to this day. Escudo is Portuguese for "shield"...
of San Miguel Corporation
San Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
which symbolizes a partnership of strength and dependability.
Strategic Priorities
To reflect new commercial strategy, the bank has setup three strategic priorities:- align operations in the servicing of San Miguel CorporationSan Miguel CorporationEstablished in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
clients and business partners; - grow current base of customers, and
- strengthen capital position.