Bank of Commerce upgraded to universal bank status

MANILA, Philippines — The banking arm of diversified conglomerate San Miguel Corp. (SMC) has obtained a universal banking license from the Bangko Sentral ng Pilipinas (BSP).

The Monetary Board has approved the upgrade of the banking license of Bank of Commerce, allowing it to provide a much broader range of products and services essential to conglomerates and businesses, particularly those expanding in 2022, as the economy recovers strongly from the pandemic.

“Our expanded banking services will allow us to fortify our presence in the domestic market and deepen relationships with clients and unlock cross sell opportunities which we intend to convert into additional revenue streams,” Bank of Commerce president and chief executive officer Michelangelo Aguilar said.

The bank is also looking to provide clients access to attractive, whole-life and investment-based insurance products, through a strong bancassurance offering.

SMC president and CEO and SMC Equivest chairman and president Ramon Ang said the banking sector is crucial to the country’s economic recovery from the pandemic.

Bank of Commerce has a strong capital position from the P5.5 billion infusion of SMC Equivest and the potential proceeds from its initial public offering (IPO).

“The bank’s strong balance sheet and the opportunities that we see both inside and outside the SMC ecosystem will pave the way for a new phase of growth for the bank,” Ang said.

Bank of Commerce filed a registration statement with the Securities and Exchange Commission (SEC) in November, and likewise an application with the Philippine Stock Exchange (PSE) this month, in connection with the proposed initial public offering of its common shares.

The common shares have an indicative offer price of up to P12.50 per common share and are intended to be offered in the first quarter next year.

As of end-September, the total assets of Bank of Commerce stood at P195 billion, representing a 14 percent growth from P171 billion at end-2020.

Further, its deposit base spread across 140 branches stood at P157 billion as of September, representing a 14 percent growth from P149 billion at end-2020.

Likewise, its net income grew by 26 percent in the first nine months of the year compared to the same period last year.