MANILA, Philippines - Philippine Savings bank (PSBank), the thrift banking unit of the Metrobank Group, is stepping up its expansion program with a planned P5-billion, Tier 2 debt instrument issue with a term of 10 years.
The bank has submitted its application to the Bangko Sentral ng Pilipinas (BSP) for approval, targeting to issue the debt paper in the first quarter next year.
PSBank president and chief executive officer Pascual M. Garcia III said while the bank would not deviate from its original plan of opening at least five branches every year, “It is faster and more economical to acquire an existing institution.”
He said one pressing reason for this aggressive stance is that competition for the consumer market is intensifying. Both commercial and thrift banks are scrambling for the same retail or consumer market, and their physical presence or branch network is the principal way to capture the market.
“Banks with more branches and automated teller machines (ATMs) will always have an advantage,” the PSBank chief executive said.
The other reason is that the BSP will fully liberalize branching regulations by 2014, which will mean banks can put up branches anywhere, thus making competition even more intense.
At present, PSBank operates a nationwide network of 200 branches, half of which are located in Metro Manila. It operates over 490 in-branch and offsite automated teller machines (ATMs).