Allied Savings Bank remains in business under ‘new’ PNB
The “new” Philippine National Bank (PNB) will retain Allied Savings Bank (ASB) as a wholly-owned subsidiary.
The “new” PNB is the result of a merger between Allied Banking Corp. (Allied Bank) and PNB, with the latter emerging as the surviving entity.
“The integration committee composed of senior officials of the two banks decided to retain the thrift bank of Allied Bank,” Rafael Sison Jr., PNB first senior vice president and head of retail banking said.
Sison added that the strategic importance of the thrift bank ensured in participation in the integration process. The two banks are in the process of branch rationalization where there is a duplication of Allied Bank and PNB branches.
ASB president Jaime del Barrio indicated that its 19-branch network will likely be retained as it has a different client profile from the Allied-PNB merged bank.
In fact, the Odiongan, Romblon branch of ASB will be retained while the PNB branch in the same area will be phased out.
Most banks has increased its focused on the consumer and small and medium enterprise (SME) market which is traditionally the market served by thrift banks.
A good example is Banco de Oro Unibank (BDO) which decided to retain the former Equitable Savings Bank although it has been renamed BDO Private Savings Bank. Even foreign banks like HSBC and Citibank have opened thrift banks to penetrate the Philippine consumer market.
“They (integration committee) decided to keep us a wholly-owned subsidiary, and that allows us to continue our medium term expansion program,” Del Barrio pointed out.
In fact, ASB has already applied with the Bangko Sentral ng Pilipinas (BSP) for two new branch licenses, and is poised to apply for three more within the year.
“If possible, we will apply for a minimum five more next year,” the bank president said.
The intermediate focus for branch expansion will be in the Visayas, and the midterm focus will be expansion in
Likewise, the thrift bank of the Lucio Tan Group of Companies will open a number of automated teller machines (ATMs) this year. The plan is to reach a ratio of one branch, one ATM by 2010.
Last year, ASB reported total resources worth P2.629 billion, and net earnings at P42 million, nearly 24 percent better than the P34 million realized in 2006. Target net income for the year was placed a rate of over 30 percent to the vicinity of P56 million.
Total deposits reached P1.7 billion while loans was registered at P994 million. Of the total loans, the SME market accounted for nearly 50 percent followed by mid-sized corporate accounts taking almost 30 percent of the total lending. The consumer market, composed mainly of personal loans, auto and mortgage loans, took on the remaining 20 percent of the loan portfolio.
Last month, Allied Bank, the mother unit of ASB, merged with PNB with the latter as the surviving entity. The integration process is said to take over a year with an estimated budget of P1.3 billion.
The merged bank will register a net income of roughly P3.5 billion this year, and a modest P4 billion next year.
PNB alone is forecast to register a net earning of P2 billion this year, and P2.5 billion in 2009. In the first three months of 2008, PNB already registered a 48-percent increase in net income, from P308 million from January to March 2007 to P457 million, buoyed mainly from strong foreign currency gains. – Ted Torres
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