PBCom gets BSP OK for cap hike to P27B

Manila, Philippines - Publicly-listed Philippine Bank of Communications (PBCom) secured yesterday the green light to increase its authorized capital stock to P27 billion from the present level of P17.5 billion.

In a disclosure to the Philippine Stock Exchange, PBCom said the Bangko Sentral ng Pilipinas (BSP) has approved the amendments to its articles of incorporation, paving the way for the increase in capitalization.

The capital increase is expected to support the bank’s effort to improve its financial strength.

The company’s new capital stock would be divided into just one class of 1.08 billion common shares with a par value of P25.

PBCom corporate information officer Rodolfo Ma. A. Ponferrada said with the approval of BSP, they would now start to seek the same clearance from the Securities and Exchange Commission (SEC).

“The company is now in the process of securing the approval of SEC to complete the required regulatory approvals before the amendment can be made effective,” he said.

PBCom was incorporated on Aug. 23, 1939 as one of the earliest non-American foreign banks in the country. It received the authority to engage in commercial banking from the then Bureau of Banking of the Department of Finance under the Philippine Commonwealth, with a capitalization of P2 million.

In December 2000, PBCom acquired 100 percent of Consumer Savings Bank as part of its strategy to expand its consumer banking business.

Over the years, PBCom posed consistent growth, with resources and capital reaching P41.6 billion and P3.6 billion, respectively, and has a total of 64 branches nationwide and 924 employees in 2010.

On July 26, 2011, a memorandum of agreement (MOA) was signed among the three major shareholders of the bank, namely the Chung, Luy and Nubla groups, and ISM Communications Corp. The ISM Group was selected as strategic third party investor (STPI), having 97.28 percent of the bank’s outstanding capital. However, the Chung and Nubla groups have expressed their intention to reinvest the proceeds of the sale of their respective shares in the bank.

ISM is majority-owned and controlled by a group led by its chairman, Roberto V. Ongpin; Eric O. Recto, its president; and Ashmore Group Plc, a British fund manager. Ongpin is currently chairman of Alphaland Corp. (engaged in real estate development), Atok Big Wedge Co. Inc. (a mining company) and Philweb Corp. (an IT and gaming company). Also, he is part of the group that holds a controlling stake in diversified conglomerate San Miguel Corp.