GSIS, SSS mull sale of Amanah Bank stake

State-run pension funds Government Service Insurance System (GSIS) and Social Security System (SSS) have yet to receive a formal offer from the Development Bank of the Philippines (DBP) to acquire their holdings in Al Amanah Bank, top fund officials said.

GSIS and the SSS each holds a 10-percent equity in the bank while the National Government owns 70 percent. DBP, which controls another 10 percent stake, is in the process of acquiring the state’s share to be the sole owner of the country’s only Muslim-oriented bank.

GSIS president and general manager Winston F. Garcia said the government pension fund “has not seriously reflected on and decided on the issue.” 

For her part, SSS president and general manager Corazon de la Paz also said they have not yet reached a decision on the matter but added they would be inclined to take the offer “if the price is right.” 

In a press briefing last week, DBP president Reynaldo G. David said they wanted to acquire the 90 percent interest  in Al Amanah and use DBP’s universal banking license for Al Amanah’s remittance business. 

David said he is confident the two pension funds will sell their holdings in Al Amanah.  In the same briefing, the DBP chief executive said they are prepared to acquire the bank for a total of P1.5 billion, including an additional P1 billion to jumpstart its operations, which will be operated as a wholly-owned subsidiary. 

Despite burdened by a deficit of roughly P65 million, the David said Al Amanah still made good business sense as it would boosts DBP’s remittance business particularly in the Middle East.

David revealed that they have already received inquiries from interest groups from both local and foreign investors regarding Al Amanah. 

DBP is also acquiring the NDC Maritime Leasing Corp. (NMLC), a subsidiary of the National Development Corp. (NDC), an attached agency of the Department of Trade and Industry (DTI).