BDO files requirements to continue operating in Cebu

Sy-led BDO Unibank Inc. on Monday said it is trying to avert the possible closure of 26 of its branches in Cebu City, saying it is complying with local government requirements.

"We have complied with the requirements but despite that, the city government has refused to accept payments for local taxes and fees, and issue the permits contrary to what they did in the past," the lender said in an emailed statement.

This comes after a news report stated that the Cebu City government may possibly order the closure of 26 BDO branches that are currently operating without business permits. The bank has yet to renew its business permits.

"I don't like to disrupt the flow of commerce in Cebu City, but believe me we will survive without Banco De Oro. They're not the only bank here in the city," Mayor Tomas Osmeña was quoted as saying in a SunStar report.

Should it fail to renew its permits in Cebu, BDO said it will try to service affected customers in other areas of the province.

"We have made the necessary arrangements for the clients to be serviced in alternative locations. This is a local issue and has no bearing whatsoever on the operation of the bank as a whole," it said.

The bank posted a net income of P19.3 billion in the first nine months of 2016, up 10 percent year-on-year.

"We would like to apologize for whatever inconvenience the recent threat of branch closures in Cebu City has created," it said.

BDO share prices opened at P114.50 apiece on the Philippine Stock Exchange on Monday, unchanged from the Friday's closing level. — Jon Viktor Cabuenas/VDS, GMA News