De la Paz of SSS voted EPCIB chairman

Equitable PCI Bank’s board of directors unanimously elected yesterday Corazon de la Paz, the head of state-run pension fund Social Security System (SSS), as its new chairman.

De la Paz replaces Ferdinand Martin Romualdez of Trans-Middle East Philippines Equities Inc. (TMEQ) group, who eventually took on one of three vice chairmanship positions.

The two other elected bank vice chairmen are Winston Garcia, president of another state-owned pension fund Government Service Insurance System (GSIS), and Teresita Sy of the SM Group, the single biggest stockholder in the bank.

"I am optimistic that the bank will move forward in a strong way because we are seeing growth in our eco-nomy this year and, I hope, on the medium to the long term," De la Paz said in a statement.

Retail tycoon Henry Sy’s SM Investments Corp. and Banco de Oro Universal Bank, which control the biggest block of shares in Equitable PCI Bank at more than 34 percent, said they welcome De la Paz’s assumption as chairman of the board of directors.

"The SM Group has expressed confidence in the capabilities of De la Paz and assures her of their full support and cooperation," the group said in a separate statement.

It cited De la Paz’s track record, including her stint as chairman of top accountacy firm Joaquin Cunanan & Co./PricewaterhouseCoopers Phils., "will serve the interests of the various shareholdes and clients of Equitable PCI Bank."

"De la Paz’z chairmanship bodes well for the bank as it came at a time when the new international accounting standards will be enforced and applied to all banks in the Philippines," the group added.

The SM Group gained substantial ownership in Equitable PCI Bank when it acquired in August last year the 25-percent shareholdings of the Go family, the bank’s founders.

Last month, Banco de Oro, the main banking arm of the SM Group, offered a merger with the much bigger Equitable PCI Bank – making a bid to create the country’s larger banking network – through a share-swap offer that, however, expired on Jan. 31. It was reported that major stockholders led by GSIS and TMEQ wanted a higher price for the Equitable PCI shares than what Banco de Oro was offering.

GSIS holds a 12.4 percent equity in the bank while TMEQ owns eight percent.

De la Paz said they are looking for an independent financial advisor to make the proper valuation of both banks and resolve the issue of pricing for common shares of each bank and how the share-swap would be executed.

"The (bank’s) management committee is finalizing the terms of hiring and the terms of reference that will be the basis for hiring the financial adviser," the SSS chief added.

"When the decision to make me chairman was done, the process was cordial with everyone looking for common solutions," she said. "It may be also a better idea for the two banks to co-exist and support each other."

"Our national leadership led by President Gloria Macapagal -Arroyo has shown us how to make the difficult but much needed reforms to make us more stable as an economy and more attractive to investors. Our recent upgraded rating fron two international rating agencies and from CalPERS have indicated the upward trend that could not have been achieved if our President took the easy way out. She has sacrificed her popularity to do what’s right for the country. We should help her in her efforts to unite the nation especially during these trying times as we are poised for the take-off we have been working for," De la Paz added.