Psbank plans fund raising next year
PHILIPPINE SAVINGS Bank (Psbank) is looking to issue P10 billion in peso-denominated long-term negotiable certificates of time deposits (LTNCDs) by next year, with the plan still pending the central bank’s approval.
“We were hoping this year, pero baka ( but maybe) next year na, hindi na aabot (time is running out)… It’s timing, we need to get regulatory approval [as] wala pang (there is still no) approval,” Psbank President Vicente R. Cuna, Jr. told reporters on the sidelines of a company event on Tuesday when asked of the bank’s target issuance date for the LTNCDs.
The thrift arm of the Ty- led Metropolitan Bank & Trust Co. (Metrobank) had said in a disclosure to the local bourse in September that its board of directors approved the issuance of P10 billion in LTNCDs with a five-year tenor “through one or more tranches over a period of one year.”
LTNCDs, like the regular time deposits, offer higher interest rates. Unlike time deposits, however, LTNCDs cannot be pre-terminated. They are called “negotiable” because they can be sold at the secondary market.
“Our approval is for P10 billion but we may not issue the whole P10 billion, kung ano lang yung kailangan (only what is needed),” Mr. Cuna told reporters yesterday.
The official noted that at this point, only P3 billion in the proposed P10 billion issuance is definite. “Anything over that, we’ll see,” Mr. Cuna said.
He said the bank will use the offer’s proceeds to fund its general operations and for liability management.
Meanwhile, Mr. Cuna said the bank is “looking at a single-digit growth rate” for its income this year, although noting that the level will still be an improvement over last year’s performance.
The official said the growth will come from Psbank’s core business, mainly from auto loans and mortgages. “That’s our bread and butter.”
Psbank saw its bottomline reach P2.35 billion in 2015, slightly better from the P2.3 billion recorded in 2014, driven by the bank’s continuous expansion of its main business in lending.
“We always target a doubledigit growth rate on the loan side [and] we’ve been hitting it,” Mr. Cuna added.
At end- 2015, Psbank’s total loan portfolio climbed to P116 billion, up 24% buoyed by growth seen in its auto and mortgage lending businesses while the bank’s assets grew by 16% to P169 billion last year.
Asked if the bank is worried on the governments move in raising tax rates imposed on vehicles, Mr. Cuna said, “We’ll deal with it... but it will affect the whole industry, hindi lang kami (not just us).”
The Finance department is proposing to increase tax rates on “entry- level cars” worth up to P600,000 to 5% from the current 2%, while luxury vehicles priced over P2.1 million will be taxed 60% of the manufacture or import price, up from the current P512,000 plus 60% in excess of P2.1 million.
Metrobank’s thrift arm saw its bottomline rise in the third quarter to P712.11 million from the P602.47 million recorded in the same period 2015 driven by its higher interest income from loans and trading gains.
PSBank shares were last traded on Monday, closing at P92 apiece. •