Plantersbank eyes more capital-raising schemes

Planters Development Bank is planning to raise more capital by publicly-listing its shares and launching debt papers.

"We are considering a second issue this year or early next year, depending on the market appetite," Ambassador Jesus Tambunting, chairman and chief executive officer of Plantersbank, said.

The bank raised a little over P1 billion last year through a Tier 2 undertaking with the Development Bank of Germany acquiring 50 percent of the bond issue.

Tambunting said offering shares of its stocks to the public through the stock market is part of its medium term program within the next three to five years.

More banks are undertaking capital-raising activities as the full implementation of new international accounting standards (IAS) and the risk-weighting Basel II norm take effect.

Meanwhile, the thrift bank’s capital adequacy ratio (CAR) stood at a healthy 16 percent and is expected to increase by at least 50 percent with the two capital raising exercises.

Total resources stood at a strong P38.7 billion with P27 billion in total deposits and P20 billion in loans.

As of August 2006, its net earnings stood at a strong P200 million, on track of its full year net income target of P300 million.

Meanwhile, Plantersbank president and chief operating officer Ma. Flordelis F. Aguenza said the bank’s total loan portfolio grew by 19 percent.

Seventy percent was tapped by the SME market, 20 percent by the housing sector, and the remaining 10 percent by the consumer market, including salary loans.

"The loan market is very competitive and extremely bullish, rates are going down," Aguenza said.

The loan portfolio of thrift banks grew by two percent while Plantersbank grew by eight percent since the 1997 Asian Crisis. In 2005, its loan portfolio grew by 19 percent versus the industry’s seven percent.