MANILA, Philippines - Philippine Bank of Communications (PBCom) is fasttracking its expansion program this year with eight new branches to add to its existing 72 full-service branches.
The universal bank also wants to operate a total of 10 other banking offices (OBOs) and 200 automated teller machines (ATMs) by yearend.
“The best way for us to honor the past 75 years of PBCom is to look ahead, armed with learnings from our history,” Nina D. Aguas, PBCom president and chief executive officer, said during its anniversary cocktails Monday.
The bank is set to open three new branches this month.
“We are focused on the next 75 years and are keeping our sights on how we can make PBCom bigger and stronger in the years to come,” the bank chief executive added.
In an effort to deepen its reach in the countryside, PBCom acquired two rural banks – Rural Bank of Nagcarlan and Banco Dipolog Inc. The acquisitions add a combined 19 rural banking branches to PBCom’s network.
However, the two rural banks will continue to operate as individual banks and will not be absorbed by the commercial bank.
PBCom acquired 59 full branch licenses in 2013, and another 50 OBO licenses from the Bangko Sentral ng Pilipinas (BSP) in February 2014.
Early this month, PBCom Insurance Services Agency Inc. started operations, complementing the investment options available to PBCom’s client base with insurance products.
It also launched SME Banking Segment, which offers business loan solutions tailored for SMEs. These include short term working capital loans, term loans, trade check discount lines, trade finance receivables lines and letters of credit.
“Expanding our SME products allows us to support their banking needs and enables us to contribute to the development and strengthening of communities nationwide,” Aguas said.
In the first semester this year, PBCom posted a net income of P190.43 million, down 44.5 percent due to the absence of trading income opportunities and a reduction in interest income brought about by the bank’s March 2014 exit from its Financial Assistance Agreement (FAA) with the Philippine Deposit Insurance Corp. (PDIC).
But core operating income grew 37.6 percent over the same period in 2013.
Deposit liabilities grew 10 percent while its loans receivables grew 16 percent. The bank closed the second quarter of 2014 with a capital adequacy ratio (CAR) of 12.02 percent.
In March this year, PBCom settled all of its obligations with the PDIC, amounting to P7.6 Billion, thus ending its 10-year FAA with the the state-run insurer.
“The second quarter of this year is the first in 10 years where PBCom has operated without support from PDIC. Through efforts to grow our deposit base and loan portfolio, we were able to restore our balance sheet to year-end 2013 levels, following our repayment to PDIC in March,” Aguas added.