BIZ BUZZ : PNB moves to reassure BSP

Following an unsuccessful attempt to hire a new president that ran for almost a year, it looks like Philippine National Bank (PNB) officer in charge Florido “Doy” Casuela will stay at the helm for now, until the bank finds a suitable candidate for permanent CEO.

Casuela is a seasoned banker with years of experience under his belt but, at 80 years of age, might not have the physical energy left to juggle the many challenges facing PNB.

And it’s not like PNB hasn’t been looking. We hear Lucio Tan III earlier offered the president’s job to the likes of Horacio “Ricky” Cebrero III—who retired early last year from RCBC—and almost had the deal sealed. But talks collapsed early this year.

Also offered PNB’s top post was former Deutsche Bank country manager Eric Cruz, who was said to be “too expensive” for the job, given the tradeoff that was being asked of him.

Unionbank executive vice president Eric Lustre was also invited, as well as another executive vice president from Chinabank, but none of these negotiations yielded any positive results, we hear.

PNB’s other challenge is equally weighty. Its owners will have to decide soon on what to do with the real estate that it spun off to a special purpose vehicle called PNB Holdings in order to lighten the bank’s nonperforming assets.

The problem, we’re told, is that the first family of Lucio Tan doesn’t quite want to let go of these prime, repossessed real estate. But if they want to retain control of these assets, they will have to shell out billions in cash to capitalize PNB Holdings.

Or the group will have to sell PNB Holdings’ shares to investors via an initial public offering (IPO). Biz Buzz hears that such an IPO may happen by the first quarter of 2024. That should ease the worries of the Bangko Sentral ng Pilipinas (BSP), given that the finances of PNB are a key concern.

Will these measures be enough to assuage BSP’s worries? Abangan!

—Daxim L. Lucas INQ

Email us at BizBuzz@inquirer.com.ph

Join our Viber community:

Read more...