Banco de Oro, the banking business of retail tycoon Henry Sys, has acquired the Philippine consumer banking operations of American Express Bank at an estimated transaction value below PHP2 billion ($0.04 billion). The deal, which seeks to strengthen BDOs hold in the mass affluent consumer segment, involves the purchase of the US banks peso and US dollar credit card portfolios as well as the consumer banking services of American Express Savings Bank. The transaction includes a fresh partnership agreement with Amex that will allow BDO, the country’s second biggest banking group, to issue Amex cards in the country. BDO plans to consolidate Amex’s business with its subsidiary, BDO Private Bank, formerly Banco Santander Philippines, which BDO bought in 2003 and has kept as a separate commercial bank subsidiary focused on the upper-income market. “Besides gaining access to a rapidly growing portfolio of high-spending customers, we see AESB as an excellent venue for expanding our consumer banking business, particularly in terms of tapping a more affluent customer base,” said BDO chair Teresita Sy. Amex has put its private banking business up for sale. It is thought to have decided to sell the private bank, which could be worth between $400 million and $500m, after it settled a protracted anti-money-laundering case with the US Department of Justice earlier this month. American Express Private Bank provides services to wealthy individuals outside the US and has about 6,000 customers. The bank operates from 24 offices worldwide and has assets under management of more than $22 billion. Over the past five years the private bank has expanded aggressively in the Middle East, a region where many American private-banking businesses have traditionally trailed behind the Swiss banks or local competitors. It also has a strong presence in Asia. American Express agreed to pay $65m to settle the anti-money-laundering case earlier this month. The fine was one of the largest ever levied against a US bank.