BDO Unibank Inc. now fully owns BDO Nomura Securities after completing the buyout of the stake held by Nomura Holdings Inc.
In a disclosure last Thursday, the Sy-led bank announced that its joint venture with the Japanese firm has been terminated following the acquisition of Nomura’s 49-percent stake by subsidiary BDO Capital & Investment Corp.
BDO shares declined by 1.30 percent, or P1.40, to close at P106.50 each amid the 1.05-percent drop for the benchmark index on Thursday.
The bank made the first announcement regarding the buyout on June 23.
Following the transaction, BDO Nomura will be merged with BDO Securities Corp. with the latter as the surviving entity.
“BDO Securities will be reorganized into a full service brokerage firm with an expanded product offering to include non-equity securities,” the listed bank said.
To recall, the original joint venture was approved in January 2016. Operations of the firm began in October the same year.
In the first nine months, BDO saw its net income drop by 48 percent to P16.6 billion because of higher provisions for potential credit loss.
Gross nonperforming loans (NPL) ratio stood at 1.97 percent while NPL coverage was P138 percent. Loan loss buffer reached P23.8 billion for the period.
The bank has a capital base of P378.6 billion as of end-September, translating to capital adequacy ratio and common equity tier 1 of 14.2 percent and 13.2 percent, respectively. Both are above regulatory minimum.