PNB aims to regain OFW remittance market share

After losing the top spot in capturing the overseas remittance market, Philippine National Bank (PNB) is bent on getting back its lost overseas accounts.

"We are beefing up our number of branches and partners abroad. We would like to regain that [remittance] market. There are many aggressive players now," said PNB senior vice president Rafael Z. Sison, Jr. in his recent visit to Cebu.

PNB used to enjoy large chunk of the OFWs' remittance to the Philippines, until more active banks had recently snatched its number one position.

Currently, PNB has 102 overseas offices and subsidiary groups, he said the bank is going to increase the number of these outlets focusing on countries like Australia, Malaysia, Thailand, Canada, and other parts in Northern America and Oceanea continents.

Sison was here in Cebu to grace the Cebu Bankers Club (CBC) 43rd Induction Ceremony. CBC is now headed by PNB vice president for group sales and retail banking sector in Visayas Hermelo Y. Parot.

He said PNB will also make aggressive partnership or engaged into joint venture deals with more remittance companies to increase its physical presence in other countries, especially those that have increasing number of Filipino population.

Sison said the Philippine banking industry is facing a much tougher competition, this means that every bank has to be alert all-the-time, "walang patulog-tulog," he said.

PNB is now 88 percent owned by the LT (Lucio Tan) Group, which make it a sister-bank of Allied Banking Corporation. The remaining 12 percent ownership stake is shared by Philippine Deposit Insurance Corporation (PDIC), and the Philippine government.

There are a total of 324 PNB branches nationwide, 218 of which are located in the provincial areas, while 106 are situated in the Metro Manila.

The bank has registered a total deposit of P168 billion, 18 percent of which is government deposit.

In the next few months, he said PNB will start to relocate some of its branches which are not profitable. One of the bank's identified niche is its accessibility, thus it captured majority of the OFW remittance for a period of time.

The government used to own the majority stake of the PNB, until the LT Group bought large part of the government share few years back. Currently, the bank is holding permit to hold government deposits until May of 2007.

However, Sison said the bank is going to ask an extension of the permit, as there are government accounts which have also outstanding loans with the bank.

PNB opened its second domestic branch in Cebu in 1917. It is one of the top five locally operated universal banks in the country. It closely competes with Metrobank, Bank of the Philippine Island (BPI), Equitable-PCI Bank, Land Bank of the Philippines (LBP).