AUB eyes top 10 bank status in 5 yrs

MANILA, Philippines - Asia United Bank (AUB), a medium-sized lender controlled by leading snack food maker Rebisco Biscuit Corp. of Chinese-Filipino businessman Jack Ng, is opening 150 new branches in the next five years as part of its plan to triple its size and become one of the top 10 domestic banks in the country.

During  its investors’ briefing Friday,  AUB first vice president Andrew Yap said the bank aims to increase its current 114-branch network to  250 in the  next five years to provide access to a broad base of investors.

The 15-year old bank was granted 54 branch licenses by the Bangko Sentral ng Pilipinas as a result of its acquisition of Cooperative Bank of Cavite Inc. in 2011 and Asiatrust Bank in 2012. It also bought the Rural Bank of Angeles to boost its presence outside Metro Manila. The licenses allowed AUB to open branches in the restricted areas of Metro Manila within a three-year grace period.

For this year, AUB plans to put up  20 new branches in Metro Manila and 33 in 2014. It also plans to open 25 outside Metro Manila in 2013 and 10 in 2014.   

To further grow its business, AUB intends to expand its loan portfolio to meet increased demand from a growing local economy, strengthen its capital base and deepen customer relationships while developing new business segments  and enhancing the suite of products and services offered.

In particular, Yap said the bank will boost  customer penetration with an increased focus on the retail segment.

AUB is building up its cash reserve to fund its ongoing expansion program and further strengthen its capital base. The bank is offering up to 88 million primary shares (including an oversubscription option of eight million shares) at a price range of P80 to P110 a piece.

Proceeds from the offering, amounting to between P7.04 billion and P9.68 billion, will be used for acquisitions or payments of branch licenses, expansion of branch network, upgrade of information technology projects and for general corporate purposes.

An international roadshow will kick off on April 29 while the pricing of the shares has been set on May 2. The domestic offering will run from May 7-14 while the listing of the shares has been set on May 17.

AUB has an authorized capital of 500 million shares, 240 million of which are outstanding.