PVB earmarks P2.2 billion for 15 branches nationwide

CEBU, Philippines – Philippine Veterans Bank (PVB) earmarks an estimated P2.2 billion to open 15 branches across the country in the next two years.

The P2.2 billion investment cost is calculated based on average expenses incurred on a single building construction that would cost around P15 million.

“We are very liquid, the bank has excess capacity. This is a good indication of depositors’ strong confidence of the bank,” said PVB president and chief executive officer (CEO) Ricardo A. Balbido Jr.

The aggressive expansion plan of the bank this year is primary prompted by the approval of the Bangko Sentral Ng Pilipinas (BSP) for 15 new branch licenses.

Yesterday, the bank broke ground to officially start the four-story PVB building, at the bank’s owned 1,200 square-meter property located at Osmeña Boulevard formerly Jones Avenue.

According to Balbino, the P28 million integrated-used building will provide value added services to veterans transacting with the bank, including medical clinics, outpatient diagnostic services, centralized disbursement of medicines, among others.

The new building which will be opened six months from now, will only use about 360 square-meters for the branch’s facility (a relocation from the Cebu Doctors’ branch), the rest will be dedicated for support services such as medical facilities, commercial outlets, and offices.

At present there are a total of 45 PVB branches nationwide. Two of which are located in Cebu, the branches near Cebu Doctors Hospital in Capitol Site, and in Mandaue City. These two branches in Cebu are servicing to over five thousand veterans.

The bank’s total resources grew by 25.3 percent to P45.59 billion by year-end 2008 compared to P36.4 billion in 2007.

According to Balbino, majority of the growth resulted from total deposits that grew by 25.3 percent to P37.1 billion from P29.6 billion year-on-year.

 The bank’s total loan receivables ballooned by 38.5 percent to P19.1 billion as of December 31, 2009 from the P13.8 billion of the same period of the previous year.

Net income stood at P406 million for the year 2008, or a 23 percent decrease from the P528.6 million reported in 2007.

Although privately owned bank, PVB is granted as one of the government’s depository banks. Balbino said aside from deposit based of veterans, and private clients, government accounts dominates its deposit base by 68 percent.

Of the 15 new PVB outlets that will be opened in the next two years, three will be situated in the Visayas region, two in Mindanao, five in Luzon, and another five in Metro Cities like Manila, Cebu and Davao.

As of December 31, 2008, PVB has been listed as the 20th largest commercial bank in the country, marking its entry into the list of the top 20 commercial in the Philippines.

PVB is owned by some 300 thousand World War II veterans and their heirs. Chaired by Col. Emmanuel De Ocampo, the bank provides 20 percent of its net profits annually for programs that benefit WW2 veterans, their widows and families through the Board of Trustees for the Veterans of World War II (BTVWWII).