The Philippine unit of Malaysia's largest bank, Malayan Banking Bhd, is holding preliminary talks with merger and acquisition targets to expand its domestic business, particularly consumer lending, its top official said.
The move is in line with Maybank's plans to widen its exposure in the region.
"There's a real seriousness in the group's intention to look for opportunities to scale up via acquisition or merger," Maybank Philippines Inc CEO Herminio Famatigan Jr told reporters late on Thursday, adding the lender has had exploratory talks.
"If we're going to buy a bank, it's going to be a bank that complements what we do or fits the business model we have," he said, adding that Maybank Philippines has a strong consumer business.
The bank's consumer loans portfolio surged 41 percent in the first six months of the year, eclipsing the 40 percent rise it recorded for the entire 2013, said Famatigan.
Since starting local operations in 1997, Maybank Philippines has set up 80 branches nationwide. It is yet to acquire or merge with a local lender.
"We've seen some consolidation, but we've not seen enough consolidation. More and more, banking requires scale," said Famatigan.
The Philippines central bank has encouraged consolidation in the industry to strengthen local financial institutions, ahead of a planned partial integration of Southeast Asian economies due to begin by the end of next year. Countries in the 10-nation alliance are keen to build national champions to bolster their banking systems.
