Exportbank trims first half loss to P334 million

MANILA, Philippines - Export and Industry Bank (Exportbank) reported a net loss of 333.7 million in the first semester of 2010, down 26 percent from the P453-million net loss in the same period last year.

In the second quarter of 2010 alone, the bank’s net loss was trimmed to P164 million from P217.9 million in the same period in 2009.

 In 2009, Exportbank reported a full year net loss of P793.7 million, following a higher loss of P905.6 million in 2008.

The mid-sized commercial bank meanwhile, reported a loan portfolio of P6.5 billion as of June 2010, lower than the P6.8 billion level at end-2009. But total deposits grew to P18.8 billion from P17.8 billion at end-2009

Total resources were pegged at P31.3 billion, slightly better than the P30.6 billion recorded in December 2009.

The bank has 2.7-billion common A shares at P0.25 par value, and 16 billion common B shares at P0.25 par.

In December 2005, the Philippine Deposit Insurance Corp. (PDIC) granted Exportbank financial assistance in the form of 10-year income support mechanism pegged at P7 billion and another 10-year subordinated debt worth P2 billion qualified as Tier 2 capital.

In April 2006, Exportbank entered into a sale and purchase agreement with a foreign financial institution for the sale of certain real properties with a gross book value of P5.2 billion and of its non-performing loans (NPLs) with a gross book value of P5 billion, all for a consideration of P1.85 billion and P1.15 billion, respectively.

The following month, the bank worked with a special purpose company for the sale of its non-performing assets (NPAs) with a gross book value of P3.24 billion for a total consideration of P515 million.

In October the same year, the bank decided to sell its assets and liabilities, including the assumption of its deposit liabilities. In July this year, the Bangko Sentral ng Pilipinas (BSP) approved in principle the acquisition of Banco de Oro Unibank Inc. (BDO) of all of Exportbank’s recorded assets and its assumption of all recorded liabilities “subject to certain conditions.”

Exportbank president Juan Victor Tanjuatco said one of their conditions is for BDO to provide liquidity to the bank “until its full integration into its network.”

Exportbank has 50 operating branches, including 35 located within Metro Manila, and 550 employees.

Meanwhile, BDO, the universal bank of the SM Group of Companies has over 700 branches nationwide, with another 30 still to be opened in the next two to three years. It likewise operates 1,200 automated teller machines.