Chinabank ups stake in bancassurance jv with Manulife

MANILA, Philippines - China Banking Corp. is raising its stake in its bancasurrance joint venture with Manulife.

In a disclosure to the Philippine Stock Exchange, Chinabank vice president and corporate secretary Corazon Morando said its board has approved the increase in the bank’s capital stake in Manulife China Bank Life Assurance Corp. (MCBL) from five percent to 40 percent.

Morando said they are currently negotiating for the purchase of the corresponding shares of stocks from The Manufacturer’s Life Insurance Co. (Phils.) Inc. (Manulife).

At the same time, Chinabank is also planning to acquire additional 246 shares of China Bank Savings Inc. (formerly The Manila Banking Corp.) by negotiated transaction “with the named shareholder who has already represented intention to sell shares, subject to proper verification of the shareholdings and compliance of the shareholder with the bank’s other requirements.”

In 2007, Chinabank and Manulife formed a joint venture company for bancassurance, or the corporate vehicle to sell Manulife insurance policies through the branches and client base of Chinabank.

Chinabank has been aggressively growing its business for the past years.

The Chinabank Group includes Chinabank, China Bank Savings, Plantersbank, Unity Bank, and China Bank Insurance Brokers Inc. It has 450 branches to date (299 Chinabank, 73 Chinabank Savings, and 78 Plantersbank).

The bank is also implementing a new core banking system for roll-out in the last quarter of the year.

Chinabank is the last major bank to raise capital in recent years. Since the start of its branch expansion program in 2006, Chinabank has more than doubled its asset size, market reach, and branch network without having to go back to its shareholders for additional capital, until this year’s stock rights offering.

Controlled by SM Group, Chinabank is the country’s first privately owned local commercial bank and now the fifth largest universal bank by market capitalization, serving the banking needs of the corporate, commercial, and retail markets since 1920.