Quantcast
Latest Stories

PNB aims to raise $300M

Bank hopes to hold fresh equity offering this year

By

The Lucio Tan group’s banking arm, Philippine National Bank, plans to raise within this year $300 million through a fresh equity offering. PHOTO FROM PNB’S FACEBOOK ACCOUNT

MANILA, Philippines—The Lucio Tan group’s banking arm, Philippine National Bank (PNB), plans to raise within this year $300 million through a fresh equity offering.

In a chance interview on Friday, PNB president Omar Mier said they had started preparations for the offering of new shares to brace itself for the stringent Basel 3 capital adequacy framework but because of the slump in the stock market, the offering was stalled.

“We hope that before December, the market will turn around,” Mier said at the sidelines of the Bangko Sentral ng Pilipinas’ (BSP) 20th anniversary celebration.

Universal and commercial banks are required by the BSP to adopt by Jan. 1, 2014 the capital adequacy standards under Basel 3, which introduces a complex package of reforms designed to improve the ability of banks to absorb losses, extend the coverage of financial risks and have stronger firewall against periods of stress.

This recapitalization program, Mier said, would allow PNB to maintain a core or tier 1 capital adequacy ratio (CAR) of 15 percent of risk assets and overall CAR of 18 percent.

“Right now, we’re compliant with Basel 3, but we had tier 2 (notes issue) that matured this year worth about P11 billion. With that, our core ratio drops slightly from 15 percent to 12 percent—still comfortable but with oversight, we want to go back to 15 percent core (CAR) by raising $300 million,” Mier said.

The new shares offering will boost PNB’s public ownership to about 25 percent from the current 18.99 percent, Mier said, adding that there might be some secondary shares to be sold alongside the primary shares.

“Definitely before the end of the year, we’ll do that. We’re working on the assumption that prices will recover,” Mier said.

As of Friday’s close of P80.75 per share, PNB has a market capitalization of about P88 billion.

PNB’s merger with affiliate Allied Bank Corp. has been fleshed out and the full integration is expected to be completed in two years.

Under the bank’s five-year strategy, PNB has set as guidance a compounded annual growth rate (CAGR) of at least 15 percent which would effectively double its net profit in five years. Also a part of the plan is to grow its loan book by an average CAGR of 18 percent for the next five years.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Banking , equity offering , fund raising , Philippine National Bank (PNB)



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • 2 killed in apparent Bahrain car bombing
  • SC suspends proctor in 2011 bar exams
  • At barricades, Ukraine insurgents await Easter
  • Solons seek ample protection for bank depositors
  • Tragedies at sea: The Sewol and the Costa Concordia
  • Sports

  • Tottenham beats Fulham 3-1 in Premier League
  • Martino defends Messi, takes blame for Barca fail
  • Vettel hoping for resurgence at Chinese GP
  • MLB pitcher donates $100,000 for Sewol ferry victims
  • Hamilton takes pole at Chinese Grand Prix
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • Fiat-Chrysler to produce iconic Jeep in China from 2015
  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • 5 Filipinos with MERS in UAE reported in stable condition
  • Marketplace