Equitable PCI Bank, one of the pioneering banks in the Philippines, has a rich history that spans several decades. Founded in 1963 as the Philippine Commercial and Industrial Bank, it was later renamed Equitable PCI Bank in 1999 after merging with two other banks.
The bank's early years were marked by steady growth, with a focus on serving the country's small and medium-sized enterprises. By the 1980s, Equitable PCI Bank had already established itself as a major player in the Philippine banking industry.
As the bank continued to grow and expand, it introduced innovative products and services that catered to the evolving needs of its customers.
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History
Equitable PCI Bank has a rich history that spans decades. The bank was formed in 1999 after the merger of Equitable Banking Corporation and PCI Bank, with the latter being acquired by the Lopez and Gokongwei families' shares being sold to the SSS and GSIS.
Additional reading: Banco De Oro–Equitable PCI Bank Merger
The shares of the Lopez and Gokongwei families were sold to the SSS and GSIS, which acquired 78% of PCI Bank shares. This marked a significant shift in the bank's ownership structure.
The bank played a crucial role in the impeachment trial of former President Joseph Estrada in 2000. It produced 15 witnesses, along with 9 other banks, to prove that Estrada's 'Jose Velarde' account was owned by him.
The bank's name was changed to Equitable PCI Bank after the merger, and its head offices were renamed to the Equitable PCI Bank Towers I and II. The Equitable Banking Corporation Binondo Center and Equitable Banking Corporation Tower in Makati were also renamed.
On August 5, 2005, the SM Group of Companies and Banco de Oro Universal Bank announced that they had purchased a 24.76% stake of Equitable PCI from the Go family. This marked the beginning of a series of acquisitions by Banco de Oro.
Banco de Oro's subsequent acquisitions enabled it to gain a 34% share in the bank. The bank's merger with Banco de Oro was approved in 2006, with Banco de Oro emerging as the surviving entity.
The merger created the second-largest bank in the Philippines, with assets of P613 billion. Banco de Oro surpassed Metropolitan Bank and Trust Company in asset size to become the largest lender in the Philippines.
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1999–2007
In 1999, Equitable PCI Bank merged with the commercial and investment banking operations of the Philippine Commercial and Industrial Bank.
This significant move marked a major shift in the bank's strategy, positioning it for future growth and expansion.
Equitable PCI Bank's assets grew from P40 billion in 1999 to P114 billion in 2000.
The bank's merger with PCI Bank also brought with it a network of over 200 branches.
By 2002, Equitable PCI Bank had increased its market share in the Philippine banking industry.
In 2004, the bank's assets reached P231 billion, a significant increase from the previous year.
Equitable PCI Bank continued to expand its operations, opening new branches and introducing new financial products and services.
The bank's efforts paid off, with Equitable PCI Bank ranking as one of the top banks in the Philippines by 2007.
Bailout
Equitable PCI Bank faced a severe bank run in December, with customers withdrawing an estimated amount of Ps30 billion, a far cry from the initial claim of Ps3 billion.
The bank's chairman, George Go, resigned days after the revelation of former President Joseph Estrada's secret accounts with the bank.
Bangko Sentral, the central bank, stepped in to provide liquidity assistance to Equitable PCI Bank, but did so under secrecy.
The estimated repo facility provided by the central bank was between Ps20 billion and Ps30 billion.
Equitable PCI's liabilities to the central bank shot up to Ps12.1 billion at year end, a sharp contrast to only Ps290 million reported in the third quarter.
The central bank exacted security in the form of the bank's real properties and investment securities, such as government treasury bills, on its balance sheet.
Equitable PCI Bank has about 1.9 million clients in over 500 branches, making it the number three bank in assets with Ps301 billion by year end.
Competition
Equitable PCI Bank had some tough competition in the market, with major players like Metrobank, Bank of the Philippine Islands (BPI), Landbank, and Philippine National Bank (PNB) vying for customers.
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These banks were among the biggest names in the industry, and Equitable PCI Bank had to work hard to stand out.
Equitable PCI Bank was a member of the leading ATM networks in the Philippines, which gave its customers access to a wide range of services.
As a founding member of Megalink, Equitable PCI Bank played an important role in shaping the network's direction and offerings.
It also operated BancNet, along with Metrobank and RCBC, providing customers with even more convenience and flexibility.
Abstract/Summary
Equitable PCI Bank was established in 1986 as a commercial bank in the Philippines, with a focus on providing financial services to the country's growing economy.
It began operations with an initial capitalization of P2.5 billion and a network of 16 branches, serving a small but growing customer base.
The bank's early success was driven by its commitment to innovation and customer service, with a focus on providing a wide range of financial products and services to meet the evolving needs of its customers.
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Equitable PCI Bank's growth was rapid, with the bank expanding its branch network to over 100 branches within the first decade of its operations.
By the mid-1990s, the bank had become one of the leading commercial banks in the Philippines, with a strong reputation for stability and reliability.
Its customer base had grown significantly, with the bank serving a diverse range of individuals, businesses, and organizations across the country.
Equitable PCI Bank's success was also driven by its strategic partnerships and collaborations with other financial institutions and organizations.
The bank's commitment to innovation and customer service continued to drive its growth and success in the years that followed.
Frequently Asked Questions
What happened to Equitable PCI Bank?
Equitable PCI Bank merged with Unibank to form BDO Unibank Inc. on December 27, 2006, in a controversial acquisition.
Who bought PCI Bank?
PCI Bank was acquired by the SSS and GSIS, who bought the shares from the Lopez and Gokongwei families. The shares were later bought by Equitable Banking Corporation led by the Go family.
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