MANILA, Philippines — Gokongwei-led Robinsons Bank Corp. is beefing up its capital base to P27 billion from P15 billion to bankroll the bank’s expansion program.
In a disclosure to the Philippine Dealing and Exchange Corp. (PDEx), Robinsons Bank senior vice president and corporate secretary Ruel Costuna said the bank’s board of directors approved the increase in the bank’s authorized capital during its regular meeting last Wednesday.
The bank’s authorized capital stock is divided into 1.5 billion common shares with a par value of P10 per share. JG Summit Capital Services Corp. control 60 percent of the bank, while Robinsons Retail Holdings Inc. owns 40 percent.
With the higher authorized capital, the bank could issue new shares to existing shareholders through a stock rights offer, go public through an initial public offering (IPO), and take in a new strategic partner.
Robinsons Bank is the country’s 19th largest bank in terms of assets. It has 134 branches, while its subsidiary Legazpi Savings Bank acquired in 2012 has 12 branches.
The bank has earmarked P737 million for capital expenditures this year to finance branch expansion and the implementation of information technology-related projects.
The capital expenditures budget would be funded out of cash flows from operations.
The bank doubled its earnings to P96.5 million in the first quarter from P49.6 million in the same quarter last year on the back of the strong performance of its core businesses.
The bank’s total resources stood at P104.43 billion in end March. Its capital adequacy ratio (CAR) reached 18.77 percent, while its return on equity stood at 3.11 percent and net interest margin at 3.32 percent.
It is currently raising as much as P5 billion via the issuance of long-term negotiable certificates of deposits (LTNCDs). It has tapped ING Bank NV as the arranger and selling agent together with Robinsons Bank.
Proceeds of the fund raising activity would support the bank’s business expansion plans and diversify the maturity profile of funding sources.
The debut of Robinsons Bank at the PDEx platform in June last year was met with strong demand, prompting the bank to upsize the P3 billion LTNCD offering to P4.18 billion.