BankCom gets universal banking license
Conglomerate San Miguel Corp. affiliate Bank of Commerce (BankCom) is preparing for rapid expansion after receiving its universal bank license, allowing it to compete head-on with the country’s top lenders.
BankCom said it recently received the formal certificate of authority as a universal bank in a ceremony led by Bangko Sentral ng Pilipinas Governor Felipe M. Medalla. This came after BankCom completed its P3.4- billion initial public offering last March.
“This upgrade of Bank of Commerce means there will now be another major player in the banking sector that can help push [small and medium-sized enterprises] and companies pursue their growth targets and long-term goals,” SMC president and CEO Ramon S. Ang said in a statement.
“SMC has continued to invest in major initiatives that will serve the current and future needs of various sectors and industries that continue to grow, despite the challenges of the pandemic,” Ang added.
A universal banking license allows BankCom to offer more products and services.
Thus, the lender said it would focus on boosting its lending portfolio to the critical SME sector to drive up economic activity.
“As a universal bank, BankCom will strengthen its presence in the domestic market and deepen its relationship with clients through a broader range of financial solutions by being able to generate and warehouse interest-bearing assets such as marketable securities, and offer more investment banking products and services, ” BankCom president and CEO Michelangelo R. Aguilar said in the same statement.
The lender earlier announced the realignment of the remaining P940 million in IPO proceeds to support the expansion of its core lending business.
“With the recent achievement by BankCom, SMC’s banking arm is on track to reach its growth targets enabling valued clients to likewise achieve growth and financial goals through the bank’s wider array of products and services,” BankCom noted.
The lender earlier announced that net income from January to June reached P886.9 million, up from P304.4 million in the same period last year.
Net interest income in the first semester rose 18.21 percent to P3.1 billion as its loan portfolio expanded by 35.6 percent. Interest expenses during the period rose 9 percent to P385.7 million.
It also saw a large jump in service charges, fees and commissions and foreign exchange gains, which grew nearly 56 percent to P583.57 million.
Expenses for bad debts fell nearly 20 percent while the ratio of non-performing loans to its loan portfolio dropped to 2.63 percent from 3.09 percent in December last year. This was below the 3.9 percent industry average of as May this year.
