Quantcast
Latest Stories

PBCom aims to fully pay P7.6-B PDIC loan this year

By

Ongpin-led Philippine Bank of Communications (PBCom) hopes to settle its P7.6-billion loan from Philippine Deposit Insurance Corp. before the end of this year as the bank enters its third consecutive profitable year, company chair Roberto V. Ongpin said.

The full payment of this loan will allow PBCom to free four of its 14 board seats currently occupied by PDIC nominees. Giving up the board seats was one of the concessions made by PBCom to PDIC in exchange for the loan.

Under the financial assistance arrangement with PDIC, the bank was required to maintain a capital adequacy ratio of 12.5 percent, which is higher than the Bangko Sentral ng Pilipinas’ (BSP) 10-percent minimum requirement.

The bank also needs the PDIC’s prior approval when declaring cash or stock dividends to shareholders.

“We want to get out of the financial assistance soon,” Ongpin told reporters at the sidelines of ISM Communication Corp.’s annual shareholders meeting.

Formerly a telecom company, ISM’s main purpose today is to serve as the holding company for the Ongpin group’s PBCom stake.

He said getting out of the PDIC’s financial assistance would be a prerequisite to the bank’s expansion in the years to come.

In the next 12 months, he said the company would strengthen its nationwide branch network and grow its loan portfolio to be supported by its stronger capital base.

The Ongpin group completed its takeover of PBCom, which it acquired for P4.7 billion from the Chung Luy and Nubla families, in November 2011.

Ongpin also noted that instead of pocketing their profits from the sale, the selling families reinvested in PBCom through the acquisition of newly-issued shares, bolstering the bank’s capital position.

ISM now controls 68 percent of the bank.

ISM president and CEO Eric Recto, who sits as the bank’s vice chair, said the company would seek the BSP’s approval for the expansion of the bank’s 64-branch network.

“Our plan is to be one of the top players,” he said.

Last year, PBCom posted a profit of P796 million, up by 35.6 percent year-on-year from 2010, mainly due to fair value gains on investment property of P315 million and higher foreign exchange earnings.

Ongpin, the local partner of British fund Ashmore, which has been investing heavily in the Philippines in the last few years, is also part of the group that holds the controlling stake in San Miguel Corp.

His group also has interests in real estate development (Alphaland Corp.), mining (Atok Big Wedge Co. Inc.), information technology and gaming (Philweb Corp.) and oil refinery (Petron Corp.).


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: Business , loan , PBCom , PDIC



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

  • Pro-Russian insurgents hold journalist hostage
  • UN heads say Syria aid needs ‘largely unanswered’
  • Captain who left doomed ferry had 40 years at sea
  • UK woman held for murder after children’s bodies found
  • Washington calls S. Sudan violence an ‘abomination’
  • Sports

  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • UST posts twin kill in Filoil pre-season cup opening day
  • Wizards beat Bulls in OT to take 2-0 series lead
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Summer movie preview: Bay reboots ‘Transformers’
  • Business

  • Toyota sells 2.58 million vehicles, outselling GM
  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • $103M Vista Land bonds tendered for redemption
  • Oil slips to $102 as US crude supplies seen rising
  • Technology

  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Brazil passes trailblazing Internet privacy law
  • New York police Twitter campaign backfires badly
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • Palace thanks Estrada for successful HK mission
  • Hong Kong accepts PH apology; sanctions also lifted
  • China won’t budge, wants PH gov’t to apologize to HK
  • Cha cha train to follow Obama visit?
  • No word yet on inking of US-PH defense pact during Obama visit
  • Marketplace