PNB banks on ‘organic’ growth in offshore push
LUCIO C. TAN-led Philippine National Bank (PNB) is focusing on “organic” sources of growth for its offshore banking business this year, with the bank seeing it a challenge to add more branches abroad amid tighter foreign regulations.
PNB President and Chief Executive Officer Reynaldo A. Maclang said in an interview that the bank is zeroing in on reaching out to more clients abroad through more “organic” growth in its offshore branches.
“In the international [space], PNB has presence in other countries, we have branches there, [ but] we are not thinking of putting up more foreign offices but growing our presence there,” he said.
Mr. Maclang said PNB plans to expand its business in the bank’s branches located in Japan, Hong Kong and even China, noting that the lender is not looking at putting up more branches outside the Philippines.
As of end-June 2016, PNB had 670 branches and 960 automated teller machines nationwide and 70 overseas branches and offices.
Mr. Maclang said that the bank’s branches outside the country are “now situated in places where there are Filipino communities,” like Los Angeles, New York, Hong Kong, Singapore, Japan and Middle East.
The listed lender’s chief executive mentioned that when PNB opened its offshore branches, a lot of overseas Filipino workers (OFWs) went to those areas, noting that “a good chunk of our business there are remittances and loans to our OFWs.”
As of end-June 2016, the PNB reported total assets worth P679.738 billion, up compared to the P647.057 billion seen at end-March.
Asked if the bank’s strategy is focused on pushing organic growth for the bank, Mr. Maclang said: “Yes, we’re not looking in any merger or anything like that.”
However, the bank’s chief executive noted that PNB is open to any opportunities for mergers or acquisitions. “If the opportunities present themselves, maybe. But so far, we’re not doing it consciously.”
Asked if PNB plans on putting up new branches here in the Philippines, Mr. Maclang said, “We’ll open a few, not too many.”
Meanwhile, on new branches abroad, Mr. Maclang said: “Ngayon, medyo mahirap kasi magtayo (It’s quite hard to put up branches now) because of regulations like AMLA (Anti-Money Laundering Act,) money laundering, medyo challenge pagtayo ngayon ( it’s a bit of a challenge to put up branches now).”
“Kasi ngayon merong regulations din doon sa kanila (Because they also have their own regulations), so you have to comply with [their] regulations and that’s proving to be a challenge for us,” he explained. •