BPI to invest in Indonesian banks

BPI to invest in Indonesian banks

Dow Jones, Manila

Bank of the Philippine Islands BPI on Wednesday confirmed it is in talks for a possible investment in Indonesia's Bank NISP, but added that negotiations are at an early stage.

"BPI confirms it has been looking at the different bank investment opportunities available in Indonesia including, among others, Bank NISP, a relatively small but very well-managed and highly-respected commercial bank," said BPI, the Philippines' second largest bank in terms of assets.

BPI said it has told the Philippine central bank of its interest to pursue potential investment in Bank NISP. It said the central bank has given its approval in principle and has expressed its support for the move.

BPI said it needs the Philippine central bank's formal approval once it has a more definite transaction with Bank NISP.

"In the meantime, the bank is currently reviewing its plans and will continue to be guided by caution and prudence given the geopolitical issues in the Middle East and the economic uncertainties sweeping the region and the rest of the world," BPI said.

BPI said Indonesia is a possible "first stop" in its initiative to expand in Asia. Indonesia has a huge consumer market and BPI believes it can inject added value into Indonesia's consumer banking business.

BPI had laid out its regional expansion plan many years ago, but the plan was derailed by the 1997 Asian financial crisis and the bank's merger with Philippine commercial bank Far East Bank & Trust Co., which was finalized in 2000.

"With the completion of the merger and integration process (with Far East Bank), the bank has once again placed the regional move up on its list of projects," BPI said.