MANILA, Philippines - Philippine Bank of Communications (PBCom) is planning to undertake capital raising activities to boost its expansion program, the bank said in a disclosure to the Philippine Stock Exchange (PSE).
PBCom said these activities include the possible conduct of a rights offer for the bank’s existing shareholders, issuance of Tier 2 capital instruments which would be Basel III-compliant, private placement of third-party investors in the bank, or any combination of these.
The bank was authorized by its board to engage the services of a financial advisor to determine the viability of the capital raising options.
Formed in 1939, PBCom is one of the oldest banks in the country.
This year, the bank is planning to intensify its branch expansion to reach a total 74 full branches, other banking offices (OBOs) and over 200 automated teller machines (ATMs) nationwide.
Out of the projected 200 total ATMs, 74 will be onsite or at the branches. The remaining 120 plus will be located offsite or in areas with high foot traffic such as malls, schools and commercial areas.
For the past months, PBCom has been engaging on major investments in new technology, branch network and human capital as part of its transformation strategy.
The bank also engaged in a buildup of key senior managers, a change in the bank’s branding and logo, now represented by a dragon, and an introduction of a new branch look and feel to reflect the bank’s thrust towards next level banking.
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 able the BSP’s requirement of 10 percent.