Makati—(PHStocks)—BDO Unibank Inc. (PSE: BDO) and SB Cards Corp. (SB Cards), the credit card subsidiary of Security Bank Corp. (PSE: SECB), have signed an agreement whereby BDO accepted SB Cards’ offer to sell its rights as the exclusive issuer and acquirer of Diners Club International (DCI) credit cards in the Philippines. The acquisition includes SB Cards’ existing Diners Club portfolio and its cardholder base. Subject to certain approval requirements, the transaction is expected to be completed within 2–3 months.
SB Cards President Ma. Cristina A. Tingson said, “The move is a strategic decision to focus on our existing card issuing business with MasterCard as our main credit card offering which we will actively expand and strengthen for our customers. Our card business remains to be a critical leg of our Retail Bank, a crucial driver of the overall growth strategy of Security Bank.”
She added, “Our discipline to focus on our goals enables us to sustain the significant progress we have made in delivering our promise of BetterBanking to our customers. We will continue to provide products and services that are responsive to the changing needs of our market. During the interim period, we will still provide systems and operational support to ensure the seamless transition of the business to BDO.”
Meanwhile, BDO underscored that its partnership with Diners Club International will further strengthen its card portfolio in the Philippines. BDO currently has the most card brands in the country, being the issuer for MasterCard, Visa, American Express JCB and UnionPay.
“The Diners Club portfolio will allow us to deliver new customer benefits to our card members. SB Cards has built a quality portfolio, and we are excited to work with those cardmembers as well as start to issue new Diners Club cards,” said Rolando C. Tanchanco, Executive Vice President of BDO.