MANILA, Philippines - The Philippine Bank of Communications (PBCom) has fully paid P7.6 billion to the Philippine Deposit and Insurance Corp. (PDIC) under its 10-year Financial Assistance Agreement (FAA).
In a disclosure to the Philippine Stock Exchange, PBCom said the payment represents the entire amount extended by the PDIC as financial assistance to the bank in 2004.
With this payment, PBCom said it successfully exits from the financial support of PDIC under the FAA.
As a result of this exit, the four PDIC-nominees in PBCom’s board of directors namely: Roberto Macasaet, Raul Serrano, Teresita Ang See and Imelda Singzon tendered their resignation effective March 26.
The resignations, PBCom said, would be formally accepted by the board of directors of PBCom during the next meeting on March 28.
Formed in 1939, PBCom is one of the oldest banks in the country. This year, the bank will celebrate its 75th year.
This year, the bank is planning to intensify its branch expansion to have a total 74 full branches, other banking offices (OBOs) and over 200 automated teller machines (ATMs) nationwide.
In 2013, PBCom posted a net income of P1.63 billion, up 68 percent from P968 million in 2012.
Earnings in 2013 were boosted by the increase in interest income on loans and receivables.
Total assets stood at P62.5 billion, up 37 percent from P45.8 billion in 2012.
Its capital stood at P4.884 billion as of end-December 2013, with capital adequacy ratio of 16.18 percent, well above the BSP’s requirement of 10 percent.