Allied Bank to relocate branches

MANILA, Philippines – Allied Banking Corp. remains unperturbed by delays in its merger with Philippine National Bank (PNB) as it looks to further relocate and renovate its branch network.

Allied Bank and PNB both controlled by taipan Lucio Tan, were originally scheduled to merge late last year. But legal issues in the United States regarding the required sale of Allied Bank’s stake in California-based Oceanic Bank has moved the merger timetable by at least another year.

US regulators wants Allied Bank to first dispose of its 28-percent holdings in Oceanic Bank before it could push through with the merger, and local regulators want it resolved before the merger with PNB pushes through.

The merger, with PNB emerging as the surviving entity, would result in the fourth largest bank in the Philippines in terms of branch network and assets. The combined branch network will reach 607, with PNB accounting for 324 branches and 283 from Allied Bank.

This year, Allied Bank will relocate a total of 12 branches, including its automated teller machine (ATM) network.

Some of the branches will also be relocated at existing and proposed establishments and condominiums of sister company, Eton Properties Inc. Some of these sites are Eton Cyberpress along EDSA, Eton Corinthians and One Archer along Taft Avenue.

“It is a continuous process with PNB, where we are always looking at areas where there are duplications, where we have no presence, and where we can find opportunities,” Art E. Chuaunsu, senior assistant vice president for Allied Bank, said.

Chuaunsu said neither PNB nor Allied Bank have applied for new branch licenses with the Bangko Sentral ng Pilipinas (BSP), preferring to saturate and maximize their existing licenses and branches.

Allied Bank branches will also be relocated in foreclosed properties that are strategically located.

The relocation of Allied Bank and PNB branches are also moving forward in areas outside Metro Manila.