San Miguel Corp. (SMC) recently boosted the capital of its banking subsidiary, Bank of Commerce, through a P5.5-billion acquisition of the latter’s preferred shares—a move which brings the financial institution closer to its goal of being upgraded to a universal bank.
In a statement, the country’s largest conglomerate said its 100-percent owned subsidiary, SMC Equivest Corp., was the vehicle used for the capital infusion, saying the investment affirms the group’s “optimism and strong outlook of growth” in the banking sector, and their commitment to support Bank of Commerce in expanding its business prospects and advancing towards becoming a universal bank.
“The net proceeds will be used to increase Bank of Commerce’s funding base for accelerating corporate and consumer loan growth, support capital expenditures in upgrading its banking technology and offer a wider menu of financial services,” the company said.
“We’re confident that in this time of pandemic, the banking sector will be essential to our country’s economic recovery, and will provide invaluable help both to our industries and Filipinos,” said SMC president Ramon Ang, who also sits as the chair of SMC Equivest. Apart from boosting the bank’s capacity for lending and investing, Ang said the capital infusion would also help the bank improve operational processes.
As of March 2021, prior to the infusion, Bank of Commerce was the 16th largest bank in the Philippines in terms of assets and 17th in terms of capital. INQ