AUB gets unibank license

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given the go signal for Asia United Bank (AUB) to operate as a universal bank.

AUB president Abraham Co said in a statement that he received confirmation from the Monetary Board for the issuance of a certificate of authority to operate (COA) as a universal bank.

The banking arm of snack manufacturer Rebisco Group also recently filed an application with the Securities and Exchange Commission (SEC) to conduct an initial public offering (IPO).

This is part of the bank’s strategy to aggressively grow its business, fund more acquisitions and widen its presence nationwide.

“The universal banking license will allow us greater flexibilities to expand further our consumer lending and banking services, and engage in investment banking activities. It is also in line with the public offering of at least 10 percent of AUB stake to the public in compliance with the BSP’s requirement for unibanks,” said Co.

Proceeds from the IPO will also allow the bank to beef up its capitalization, a significant step to meet the BSP’s deadline on adopting the stringent capital adequacy requirements under Basel III international guidelines by Jan. 1, 2014.

AUB ended 2012 with a capital adequacy ratio (CAR) of 15 percent, which is above the regulatory minimum level of 10 percent.

A universal bank license allows a bank to create profitable diversions and economies of scale. It also enables the bank to offer investment services.

With the unibank license, the AUB is now more confident to pursue its plan to double its branch network by 2015. AUB will open 45 new branches this year to widen its footprint from 107 branches nationwide.

In just a span of three years, AUB bought the Rural Bank of Angeles, increasing its presence outside Metro Manila; Asiatrust Development Bank; and Cooperative Bank of Cavite, which was renamed Cavite United Rural Bank.

In addition to physical presence and alternative channels such as online banking, AUB launched last year its mobile banking application.

The AUB Mobile App offers other functions beyond account balance and transaction history inquiries.

AUB has registered 342.857 million shares in the local bourse as part of its requirements in getting its unibank license.

Of the total listed shares, 102.857 million shares would be subject to an initial public offering IP at a maximum price of P110 each.

The bank expects to raise roughly P11.314 billion, of which P5.5. billion will be allocated for its expansion plans and general corporate purposes.

Joint bookrunners and joint lead managers for the IPO are UBS Ag (Hong Kong branch) and Credit Suisse (Singapore) Ltd.