Bank of Commerce
The Bank of Commerce, commonly known as BankCom, is a publicly listed universal bank in the Philippines that provides a wide range of retail, corporate, and investment banking services to individuals and businesses nationwide.[1] Established in 1963 as the Overseas Bank of Manila in Binondo, Manila, it later operated as the Boston Bank of the Philippines before adopting its current name in November 1991 and achieving full Filipino ownership in 1993 following the buyout of foreign interests.[1][2] Since 2008, it has been an affiliate of the San Miguel Corporation (SMC), the country's largest conglomerate, which holds a majority stake exceeding 84% through various subsidiaries, enabling significant capital injections and strategic expansion.[3][4] Licensed by the Bangko Sentral ng Pilipinas (BSP) as a universal bank, BankCom offers products including deposit accounts, loans, credit cards, remittances, trade finance, and digital banking solutions via its mobile app and online platforms such as BankCom Personal and BankCom Business.[1] As of September 2025, the bank ranks 15th largest by total assets among Philippine universal and commercial banks (mid-tier), with total assets of PHP 276.25 billion, a network of 141 branches and 272 ATMs across the country, and a focus on underserved markets through its affiliation with SMC's diverse ecosystem.[5][6] In the first nine months of 2025, it reported a 24% year-on-year increase in net income to PHP 2.75 billion, driven by core revenue growth in interest income and fees, alongside a return on equity of 63% and total capital funds of PHP 35.64 billion.[5] Headquartered in Mandaluyong City, BankCom continues to emphasize sustainable growth, digital innovation, and community-oriented banking as part of its vision to become the leading conglomerate bank in the Philippines.[3]History
Founding and early development
The Overseas Bank of Manila was established on December 16, 1963, as a commercial bank specializing in international trade financing within the Philippines. Incorporated with its headquarters in the Binondo district of Manila, the bank was designed to support the growing needs of the country's export and import sectors during a period of post-war economic recovery and expanding global trade ties.[7][1] From its inception, the bank's operations were primarily concentrated in Manila, offering core services such as deposit accounts, loan facilities, and foreign exchange transactions tailored to exporters and importers. This focus aligned with the era's emphasis on facilitating international commerce, where private domestic banks like the Overseas Bank of Manila played a key role in financing foreign trade activities and serving multinational clients. In 1968, the bank faced a significant bank run and was closed by the Central Bank on August 21; it underwent rehabilitation before resuming operations. Starting with a limited network of branches in the capital, the institution gradually expanded its reach through the 1960s and 1970s, broadening its clientele to include small businesses and government employees amid the Philippines' evolving financial landscape.[1][8][9] In 1980, the Overseas Bank of Manila was renamed the Commercial Bank of Manila. The following year, in 1981, the Government Service Insurance System (GSIS) acquired it, prompting a strategic pivot toward domestic retail banking. This ownership change marked the institution's first major transition, enabling it to better cater to local depositors and expand services beyond international trade to everyday financial needs of Filipino households and enterprises. In 1984, it acquired Royal Savings Bank, expanding into thrift banking.[10]Renamings, acquisitions, and expansions
In 1988, the Commercial Bank of Manila, originally established as the Overseas Bank of Manila in 1963, was acquired by The First National Bank of Boston, leading to its renaming as the Boston Bank of the Philippines.[11] This foreign partnership marked a significant shift in the bank's operations during the late 1980s.[12] By November 1991, the bank underwent another name change to Bank of Commerce, emphasizing its commitment to serving the domestic market.[11] This rebranding occurred amid efforts to localize ownership, culminating in 1993 when the bank achieved full Filipino ownership following the divestment by its foreign stakeholders.[11] To fuel its growth in the early 2000s, Bank of Commerce pursued strategic acquisitions, including the acquisition of Pan Asia Bank in 2001 and the purchase of selected assets and assumption of selected liabilities from Trader's Royal Bank in November 2001.[11] These moves substantially broadened the bank's branch network and customer base across key Philippine regions, enhancing its competitive position in commercial banking.[11][13] A pivotal regulatory milestone came on January 16, 2013, when the Securities and Exchange Commission approved an amendment to the bank's articles of incorporation, extending its corporate life by 50 years from December 16, 2013, to ensure sustained operational stability.[14] This extension aligned with broader corporate governance reforms in the Philippine banking sector.[14]Acquisition by San Miguel Corporation and recent milestones
In 2008, San Miguel Corporation (SMC) acquired a controlling stake in Bank of Commerce, transforming it into a key affiliate within the conglomerate's diversified portfolio.[1] This strategic move was executed primarily through San Miguel Properties, Inc., establishing SMC as the majority stakeholder and integrating the bank into its broader ecosystem of businesses.[3] The acquisition marked a pivotal shift, leveraging SMC's resources to bolster the bank's operational capabilities and market positioning in the Philippine financial sector. The bank's evolution continued with its upgrade to a universal banking license from the Bangko Sentral ng Pilipinas (BSP) in October 2022, enabling expanded services such as investment banking and trust operations.[3] This positioned Bank of Commerce as the 15th largest bank in the Philippines by total assets in 2022, reflecting its strengthened role within the SMC group.[15] A major recent milestone was the completion of a comprehensive core system upgrade in September 2025, modernizing all 140 branches and the entire ATM network in collaboration with technology partners Infosys and IBM to improve efficiency and customer experience.[16]Ownership and governance
Major shareholders and ownership structure
Bank of Commerce is a publicly listed universal bank on the Philippine Stock Exchange under the ticker symbol PSE: BNCOM, with a significant portion of its ownership held by affiliates of San Miguel Corporation (SMC).[17] As of April 15, 2025, the bank's outstanding common shares total 1,403,013,920, enabling minority shareholders, including institutional investors represented through PCD Nominee Corporation (Filipino and non-Filipino pools), to hold approximately 21.5% of the voting shares collectively. Recent disclosures as of September 30, 2025, indicate no material changes to the major ownership structure.[18][17] The major shareholders are primarily SMC affiliates, reflecting the conglomerate's strategic control following its 2008 acquisition of a substantial stake in the bank.[3] San Miguel Properties, Inc. (SMPI), in which SMC holds 99.87% ownership, possesses 31.91% of Bank of Commerce's common shares (447,711,800 shares).[17] The San Miguel Corporation Retirement Plan follows closely with 30.84% (432,626,860 shares), while SMC Equivest Corporation, a wholly owned SMC subsidiary, holds 4.87% (68,305,560 shares).[17] Additionally, Caritas Health Shield, Inc. maintains a notable minority stake of 7.82% (109,666,640 shares), with the remaining 3.06% distributed among other smaller holders.[17]| Shareholder | Ownership Percentage (%) | Number of Common Shares | Affiliation |
|---|---|---|---|
| San Miguel Properties, Inc. | 31.91 | 447,711,800 | SMC affiliate (SMC owns 99.87%) |
| San Miguel Corporation Retirement Plan | 30.84 | 432,626,860 | SMC affiliate |
| Caritas Health Shield, Inc. | 7.82 | 109,666,640 | Independent |
| SMC Equivest Corporation | 4.87 | 68,305,560 | Wholly owned by SMC |
| PCD Nominee Corporation (combined) | 21.50 | ~301,725,670 | Public/institutional investors |
| Others | 3.06 | ~42,933,000 | Various minor holders |
Board of directors and executive leadership
The President and Chief Executive Officer of Bank of Commerce is Michelangelo R. Aguilar, who assumed the role in 2018 and oversees the bank's daily operations, strategic direction, and implementation of growth initiatives.[19] Aguilar, with extensive experience in banking and finance, leads the executive team comprising several executive vice presidents and senior vice presidents responsible for key functions such as treasury management, corporate banking, compliance, and information technology.[19] The board of directors, as of May 27, 2025, comprises 15 members, including a mix of executive, non-executive, and independent directors to ensure balanced governance.[20] It features representatives aligned with San Miguel Corporation, the bank's majority owner, alongside independent directors including Antonio S. Abacan Jr., Ricardo D. Fernandez, Daniel Gabriel M. Montecillo, Simon R. Paterno, and Lead Independent Director Leonardo J. Matignas Jr., fulfilling the Bangko Sentral ng Pilipinas (BSP) requirement of at least 20% independent representation for regulatory oversight.[20][21] Notable members include former BSP Monetary Board member Fe B. Barin, contributing expertise in regulatory compliance. Subsequent to this date, Independent Director Rebecca Maria A. Ynares resigned effective June 30, 2025, to serve as Representative of the 1st District of Rizal; Antonio S. Abacan Jr. was appointed on July 29, 2025, to complete her term.[22][23] The board is supported by a Board of Advisors chaired by Jose T. Pardo, which provides strategic counsel on conglomerate-related matters.[20] Key roles within the board emphasize robust corporate governance and operational resilience. Chairperson Benedicta A. Du-Baladad, a seasoned lawyer and CEO of Du-Baladad and Associates, leads oversight of governance, ethics, and board committees including audit, risk, and corporate governance.[20] Vice Chairperson Roberto C. Benares, a former bank president, supports strategic alignment, while CEO Aguilar drives risk management and sustainable growth. The board's composition highlights diversity in gender and professional backgrounds, with expertise spanning finance, law, and corporate operations to navigate the bank's integration within the San Miguel ecosystem. Board meetings prioritize BSP regulatory compliance, advancements in digital transformation, and expansion strategies following the completion of the bank's core system upgrade in 2025, which modernized its 140 branches and ATM network.[20][24]Products and services
Core banking products
Bank of Commerce provides a range of deposit products designed for both retail and corporate clients, including savings accounts, current accounts, and time deposits, all accessible through digital platforms like the BankCom Personal mobile app for real-time monitoring and transactions.[25][3] Savings accounts, available in Philippine pesos and US dollars, offer competitive interest rates of 0.125% p.a. as of November 2025 and include features such as debit cards and passbooks for everyday banking needs.[26][27] Current accounts function as checking accounts with automatic fund transfer facilities, supporting seamless withdrawals and deposits without minimum balance requirements in some variants.[28][3] Time deposits, including regular and special options with terms from 30 days to one year, provide higher yields based on prevailing market rates, catering to clients seeking short- to medium-term savings growth.[29][3] The bank's lending services encompass personal, home, auto, and small and medium enterprise (SME) financing, with a focus on underserved sectors such as agriculture and exports to support economic development in the Philippines.[30][3] Personal loans include salary loans for employees, offering quick access to funds with terms up to 24 months and competitive interest rates.[30][3] Home loans provide financing for property purchases or construction, secured by real estate with maturities up to 20 years and competitive rates.[3] Auto loans cover vehicle acquisitions through chattel mortgages, with approvals processed efficiently for terms up to five years.[31][3] For SMEs, the bank offers term loans and business credit lines, with total loans reaching PHP 130.332 billion as of December 2024, emphasizing support for agriculture via agri-agra loans amounting to PHP 11.7 billion as of 2023 and export financing through pre-shipment advances and loans against trust receipts to facilitate trade liquidity.[32][3][33] Transaction banking services at Bank of Commerce include remittances, payroll processing, and cash management solutions integrated with Bangko Sentral ng Pilipinas-regulated systems like PESONet and InstaPay for secure and efficient operations.[34][3] Remittances are facilitated through the SIKAPPINOY program, which supports overseas Filipino workers with dedicated savings accounts and international transfers, including partnerships for the Japan market since 2023.[35][3] Payroll services, under the CASH PAY facility, enable employers to disburse salaries directly within the bank's network, streamlining payments for businesses.[34][3] Cash management tools such as BankCom PAY, directPAY, and depositCOLLECT provide real-time fund monitoring, electronic collections, and payments to suppliers or government agencies like BIR and SSS, generating PHP 157.9 million in service charges as of 2023, with fee income growing 9% in 2024.[34][3] Credit card offerings from Bank of Commerce, introduced as part of post-2000 expansions under San Miguel Corporation ownership to enhance competitiveness against larger Philippine banks, include Mastercard variants with integrated rewards programs, such as the Corporate Card launched in 2024 for SMEs and large companies.[36][37][3] The Rewards Plus program allows cardholders to earn one point per PHP 50 spent, with 5x points on select dining and shopping, redeemable for merchandise via an annual catalogue; receivables reached PHP 5.9 billion as of 2024.[36][3] Variants such as Classic, Gold, Platinum, and World Mastercard provide escalating benefits, including travel insurance up to PHP 2 million and airport concierge services, alongside cash installment options for flexible financing.[36][3]Specialized financial services
Bank of Commerce provides specialized financial services that extend beyond standard retail and commercial banking, focusing on sophisticated solutions for corporate clients, high-net-worth individuals, and institutions within its universal banking license from the Bangko Sentral ng Pilipinas (BSP). These offerings include treasury operations, trust and investment management, and asset management, designed to support risk mitigation, wealth preservation, and portfolio optimization.[38][1] The bank's treasury services cater to corporate hedging and liquidity needs through foreign exchange trading, money market instruments, and derivatives. Foreign exchange trading encompasses spot conversions for immediate currency exchanges within two banking days and forward contracts for future deliveries up to one year, enabling importers and exporters to lock in rates against fluctuations; for instance, forward rates are calculated as the spot rate plus swap points. Money market instruments include short-term Treasury Bills (91 to 364 days maturity, minimum PHP 10,000 investment) and longer-term Treasury Bonds or Fixed-Rate Treasury Notes (2 to 25 years, minimum PHP 5,000–10,000), both offering risk-free government-backed yields with semi-annual or quarterly coupons. Derivatives such as forward FX contracts are utilized specifically for hedging underlying trade obligations, requiring documentation to ensure compliance. These services are accessible via branches with defined cut-off times, such as 3:30 PM for T-Bill placements.[39] Trust and investment services operate under BSP trusteeship, providing structured solutions for wealth management and fiduciary responsibilities. Key offerings include Unit Investment Trust Funds (UITFs) with a minimum investment of PHP 10,000 or USD 1,000, featuring conservative options like the Diversity Money Market Fund, moderate bond funds in pesos or dollars, and aggressive equity-focused funds for diversification and liquidity. Investment Management Accounts (IMAs) deliver customized portfolios in bonds, shares, and other assets for higher yields, while Personal Management Trusts facilitate estate planning and wealth distribution, bypassing probate delays of 1–10 years. Pension management is handled through Retirement Funds for employee benefits, offering tax exemptions and professional oversight. Additional specialized trusteeship includes escrow arrangements for buyer-seller transactions or Philippine Overseas Employment Administration requirements, facility agency roles, mortgage trust indentures, and safekeeping services; these are not insured by the Philippine Deposit Insurance Corporation and carry market risks borne by clients.[40] Asset management services target high-net-worth individuals and institutions with portfolio advisory and tailored strategies, enhanced by a 2020 partnership with Manulife Asset Management and Trust Corporation to access diverse onshore and offshore investment options. As the financial arm of San Miguel Corporation, Bank of Commerce leverages group synergies to strengthen asset quality and profitability in managing portfolios, which reached PHP 72.73 billion in assets under management as of 2024. These services emphasize professional fund oversight and administrative efficiency for institutional clients.[41][42][3][43] In 2025, following a comprehensive core system upgrade completed in August, Bank of Commerce introduced enhancements to transaction banking, including API integrations for seamless corporate client operations and improved liquidity management tied to treasury services. This modernization, in partnership with IBM, upgraded all 140 branches and the ATM network to support advanced hedging and investment processing.[24][16]Operations and network
Branch and ATM infrastructure
As of 2025, Bank of Commerce maintains a nationwide network of 140 branches strategically distributed across the Philippines, with a significant concentration in Metro Manila and key provinces in Luzon, while also extending to Visayas and Mindanao regions to serve urban and semi-urban communities.[24][44] This distribution prioritizes accessibility in high-population areas, enabling the bank to support a diverse customer base including employees and affiliates of its parent company, San Miguel Corporation.[1] The bank's ATM infrastructure comprises 272 automated teller machines, including on-site units within branches, off-site installations at strategic locations such as commercial hubs, and cash kiosks that facilitate 24/7 cash withdrawals, deposits, and non-cash transactions like balance inquiries and fund transfers.[24][45] These ATMs enhance physical accessibility, particularly in areas without full branch services, and are designed to handle increased transaction volumes with enhanced security features.[45] Strategic expansions have bolstered the network's reach, notably through acquisitions in the early 2000s that incorporated additional branches and extended services to rural and semi-urban locales previously underserved by the bank.[46] In 2025, the bank completed a comprehensive upgrade to its core banking systems across all 140 branches and the full ATM fleet, introducing advanced teller systems and migration to modern platforms for improved operational efficiency and faster service delivery.[24][47] This initiative complements the bank's digital channels by ensuring robust physical infrastructure for customers preferring in-person banking.[24]Digital and technological initiatives
The Bank of Commerce has developed digital platforms to facilitate convenient customer access to banking services. The BankCom Personal mobile application, launched in 2020, enables users to manage savings and current accounts, time deposits, fund transfers, bill payments, and other account-related functions from their devices.[48] Complementing this, the bank's online banking portal, BankCom Personal, supports similar features including secure logins for transfers and payments, with enrollment available through the website or app.[49] In September 2025, the bank completed a full core system replacement, migrating its legacy infrastructure to a modern platform in partnership with Infosys for digital banking solutions and IBM for hybrid cloud and AI capabilities.[24] This upgrade integrates artificial intelligence for enhanced fraud detection and accelerates transaction processing, enabling real-time operations across the network.[50] The technological advancements support collaborations with technology providers to advance API-enabled banking services, fostering integration with external systems for improved efficiency.[24] Following the upgrade, 100% of the bank's 140 branches and 272 ATMs now facilitate real-time processing, which has minimized downtime and strengthened cybersecurity measures in alignment with Bangko Sentral ng Pilipinas standards.[47]Financial performance
Key historical metrics
The Bank of Commerce, established in 1963 as the Overseas Bank of Manila, began operations with modest assets focused on basic commercial banking in the Philippines.[51] Over the decades, it experienced steady expansion through acquisitions and strategic partnerships, culminating in total assets of PHP 145.0 billion by the end of 2019, reflecting a compound annual growth rate supported by economic liberalization and increased market penetration.[51] This growth trajectory was marked by net income after tax reaching PHP 0.65 billion in 2019, driven primarily by interest income and controlled operating expenses amid a robust Philippine banking sector.[51] Total equity accumulated to PHP 16.1 billion by 2019, bolstered by retained earnings and capital infusions following the 2008 acquisition by San Miguel Properties, Inc., a subsidiary of San Miguel Corporation.[51] In that year, San Miguel Corporation approved an additional PHP 5.5 billion equity investment to facilitate the bank's upgrade to universal banking status, enhancing its capacity for diversified financial activities.[51] Prior to the global financial crisis, the bank's deposit base grew steadily, fueled by its longstanding ties to the Government Service Insurance System (GSIS), which acquired controlling interest in 1981 and rebranded it as ComBank, leveraging public sector deposits for expansion.[14] By 2022, the Bank of Commerce had evolved from a mid-tier player in the 1990s—when it ranked outside the top 20 by assets amid a fragmented banking landscape—to the 15th largest universal and commercial bank in the Philippines, with total assets exceeding PHP 199 billion according to Bangko Sentral ng Pilipinas (BSP) data.[15] This positioning underscored its improved scale relative to peers, positioning it as a notable mid-sized institution in a sector dominated by larger universal banks.| Key Metric | Value (2019) | Notes |
|---|---|---|
| Total Assets | PHP 145.0 billion | End-of-year figure, reflecting post-acquisition consolidation.[51] |
| Net Income After Tax | PHP 0.65 billion | Attributable to parent, up from prior years on interest and fee income.[51] |
| Total Equity | PHP 16.1 billion | Includes retained earnings and San Miguel infusions.[51] |