PNB absorbing thrift bank to strengthen consumer, SME business

Tycoon Lucio Tan-led Philippine National Bank (PNB) is set to consolidate with its thrift bank arm PNB Savings Bank to unlock synergies within the banking group.

PNB disclosed to the Philippine Stock Exchange on Friday a plan to integrate with its wholly owned thrift bank subsidiary by acquiring its assets and assuming its liabilities in exchange for cash, pending regulatory and other necessary approvals.

Notwithstanding PNB Savings’ double-digit growth in assets over the years and its significant contribution to the parent bank’s profitability, its business could still reach greater heights through the planned integration.

PNB president Reynaldo Maclang said: “Our bank’s consumer lending business, which is being operated through PNB Savings, will benefit from the parent bank’s ability to efficiently raise low-cost funds.”

Once PNB is integrated with its thrift bank, PNB is seen to deliver a more efficient banking experience. “Upon full integration, PNB will be able to serve a wider customer base while the customers of PNB Savings Bank will have access to PNB’s diverse portfolio of financial solutions upon full integration,” Maclang said.

The integration is also seen to result in improved synergies among branch networks. As of end-August, PNB has 644 domestic branches while the thrift bank has 63 branches.

“The integration effectively enhances our competitive stance in the consumer and SME business segments,” Maclang said.

As of the first half of 2018, PNB registered a consolidated net income of P5.4 billion, double the earnings for the same period in the previous year.

PNB currently ranks 4th largest among Philippine banks in terms of assets, with consolidated resources of P876.2 billion.