Planned sale won't affect safety of AIG Philam Savings deposits

The planned sale of AIG Philam Savings Bank will not have an impact on its customers’ deposits or investments, a bank official said over the weekend.

AIG Philam Savings president and chief executive officer Joven Reyes emphasized that the bank is extremely profitable and highly liquid.

“AIG Philam Savings is ready to meet depositors’ entitlements to funds and meet its other obligations to its creditors, merchant partners, sales agencies, service providers and business partners as they come due,” Reyes said.

He said they have adopted a reasonable timeline to complete the sale to ensure the best outcome for the bank and its shareholders, as well as business partners, suppliers, depositors and investors.

Last year, AIG Philam Savings ranked ninth in terms of assets among the top 30 thrift banks in the country. The bank’s total assets stood at P13.08 billion.

It likewise ranked among the top 10 thrift banks in terms of deposits and loans.

The bank’s total deposits reached P11.29 billion and loans at P10.11 billion.

Its capital adequacy ratio (CAR) stood at a healthy 12.48 percent. The BSP requires a minimum level of 10 percent while the international standards was placed at eight percent.

AIG Philam Savings is 45-percent owned by AIG Consumer Finance Group (CFG) and another 45-percent is owned by the Philippine American Life and General Insurance Co. (Philamlife), the largest and most profitable insurance company in the country.

The AIG CFG in turn is a subsidiary of the American International Group (AIG), which recently received an $85-billion bailout package from the Federal Reserve Bank of New York.

Last Friday, the AIG declared that it was forced to seek divestment of its global assets to generate funds to repay the New York Fed loan package.

AIG identified among others that its assets in the Philippines will be placed in the auction block.

The Philamlife group includes financing, life and non-life insurance, asset management, pre-need plans, credit cards, as well as business process outsourcing. All its business lines are highly classified in their respective sectors.