PSBank declares cash dividend ahead of stock rights offering

Phillipine Savings Bank (PSBank) has declared a 1.5 percent or 15-centavo per share cash dividend for the second quarter of 2007 amounting to a total P30.291 million. 

PSBank executive vice president Rolando A. Rodriquez said the record date to determine common stockholders entitled to the regular cash dividend will be on Nov. 23.

“Dividend checks, which will reflect the total amount, will be available on Dec. 7,” Rodriquez said in a report. 

Last Thursday, the thrift bank unit of the Metrobank Group said it will set the price of its stock rights offer within the P62.50 per share guiding rate.

The rights offer will raise roughly P2.5 billion as the bank continues to beef up its capital base for its expansion thrusts next year as well as ensure the capital depth based on the Basel II framework. 

It had a capital adequacy ratio (CAR) of 17.7 percent as of end-June this year and is expected to increase this to 18 percent after the capital-raising exercise.

PSBank president and chief executive officer Pascual M. Garcia III said in an earlier interview that they would want to finish the transactions this year so that fresh capital could strengthen its capital base. 

About 40 million common shares from its outstanding authorized but unissued shares will be offered to existing shareholders.

Garcia said the rights offer will be pure Tier 1, the most preferred capital rising mode involving no future obligation but rather new money injected by existing shareholders.

PSBank has total listed and outstanding shares of nearly 202 million of which over 42 million are float shares. Its market capitalization stands at P12.823 billion.

Thrift banks with universal or commercial bank as mother firm, for now, have been given certain breathing space from Basel II. Instead, its risks will be calculated on a consolidated basis with the mother bank.