Metrobank hikes PSBank stake

MANILA, Philippines – Listed Metropolitan Bank & Trust Co. shelled out P1.61 billion to raise its stake in thrift bank arm Philippine Savings Bank to over 80 percent through a block sale last Wednesday. 

PSBank senior vice president and CFO Perfecto Ramon Dimayuga Jr. said its parent firm bought 16.093 million shares of PSBank at P100 per share last July 28.

The additional stake is equivalent to 6.69 percent of the thrift bank’s total outstanding capital stock. 

This brought the number of shares owned by Metrobank in PSBank to 198.629 million or 82.67 percent from the previous 182.535 million or 75.98 percent. 

The identity of the sellers was not included in the report submitted to the Philippine Stock Exchange. 

Prior to the transaction, Metrobank owned 75.98 percent and another 7.7 percent through PCD Nominee Corp. together with Metrobank chairman Arthur Ty. 

Other major shareholders include Danilo Dolor with 5.25 percent, Erlinda Dolor (3.16 percent), Maria Soledad de Leon (1.66 percent), Gian Carlo de Leon (1.14 percent), Leonardo Frederick de Leon (1.08 percent), Alvin Benjamin de Leon (1.01 percent), Kevin Anthony de Leon (one percent). 

Metrobank recently announced it was raising P20 billion in fresh equity through the issuance of Long Term Negotiable Certificates of Time Deposits (LTNCD) to take advantage of the liquidity in the financial system as well as low interest rate environment. 

The LTNCDs would have a tenor of 5.5 to 10 years and would be issued depending on market conditions. 

LTNCDs are like the regular time deposits that offer higher interest rates. However, LTNCDs could not be pre-terminated and are negotiable because these could be sold at the secondary market. 

On the other hand, PSBank is redeeming P3 billion worth of unsecured subordinated debt –Tier 2 notes issued in 2012 ahead of their 2022 maturity. 

Both Metrobank and PSBank are owned and controlled by taipan George Ty.

Metrobank is the country’s second largest universal and commercial bank in terms of assets with P1.37 trillion as of the end of  March while PSBank is also the second largest thrift bank with resources amounting to P173.86 billion.