CEBU, Philippines - The Philippine Veterans Bank (PVB) is asking the help of government agencies in Cebu for it to continue to live its mandate of serving the country’s World War II veterans and their widows, orphans and heirs.
“We are encouraging government agencies and (government-owned companies and corporations here in Cebu) to deposit their funds also in the bank (PVB). Even if we are a private commercial bank, the law has given us the privilege to accept deposits (from government institutions,)” said PVB president and chief executive officer Ricardo Balbido Jr.
He said on the sidelines of the inauguration last Monday of its new four-story building located on Omen Blvd. corner Sanciangko St. that banking with PVB is one way of thanking the Filipino World War II veterans for their heroism in defending the country during the said war.
PVB is one of the two private commercial banks given the privilege by law to accept government funds. The other is Amana Bank in Mindanao.
PVB spent around P20 million for construction of the building, which houses its Cebu branch and regional business center, and the development of the 200 square-meter property. The bank will lease out to interested locators the spaces on the third and fourth floors. A clinic to serve the veterans is also located within the property.
The bank has two branches in Cebu. One is located in Mandaue City. PVB’s branch in Cebu Doctors’ Science Building is relocated to the new building.
Balbido said the Cebu branches ranked third, in terms of deposits, of PVB’s 60 branches nationwide. This signifies the confidence in the bank of both government and private depositors in Cebu. PVB has been looking for key areas in the province where it may locate its additional branches.
PVB simultaneously opened in January this year 10 branches in several parts of the country including Tagbilaran, Bohol and Kalibo, Aklan.
“Increasing our network is the only way to grow the business and meet the growing needs of our customers and shareholders. Most of the new locations are in key cities outside Metro Manila and these will help provide impetus for Veteran Bank’s future growth,” Balbido said.
He however said that the bank must still be within a size that will enable it to contain and control its growth for the benefit of its stakeholders.
As of end of 2009, PVB has moved to being the 18th largest commercial bank in the country from 33rd with over P51 billion in total assets and over P5.1 billion in capitalization. PVB’s capital-adequacy ratio (CAR) remained high at 18.36-pecent using Basel II, despite the bank’s continued growth over the years. The CAR is a measure to determine a bank’s capability to shoulder risk. BSP’s CAR requirement is at 10-percent.
Balbido attributed PVB’s dramatic growth to its re-imaging, from having an image of being a government bank to one that serves both government and private entities and individuals.
PVB is owned by some 350, 000 veterans and their designated heirs. As part of its mandate, it is committed to provide 20-percent of its annual income to the Board of Trustees of the Veterans of World War II, which in turn manages programs for the benefit of the veterans such as free clinics and consultations and educating the younger generation through the museum in Taguig and mobile exhibits on the advantages and disadvantages of the world war II.