The top in thrift
THE INITIAL public offering (IPO) conducted by Philippine Business Bank (PBB) in February 2013 spawned the rapid expansion of the thrift bank in the years that followed, and propelled it to a position it had only envisioned before.
“When the current CEO took over late in 2011, he was given a mandate by the principal shareholder Ambassador Alfredo M. Yao, to expand the branch network, list the bank, and secure a universal banking license,” PBB Investor Relations Officer and Vice-President and Head of Corporate Planning John David D. Sison told
BusinessWorld in an e-mail. Mr. Sison said the key catalysts of the IPO included a buoyant stock market, strong profitability, and a clear vision from the leadership team of where it wants to take PBB.
“The bank’s ultimate goal is to become a full-service financial institution that will allow PBB to develop non-interest, fee-based revenue streams such as insurance, equity research, investment management and merchant/investment banking,” he said.
The Yao-led bank listed 343.333 million shares at P31.50 apiece, with 101.33 million common shares of the total sold to the public. The next day, the stock price rose by 15.40% and closed at P36.35 apiece.
According to Mr. Sison, the fresh capital from the public offering enabled PBB to further strengthen its foothold in the small-to-medium enterprise (SME) sector and grow its asset base aggressively with a focus on loan growth and the trading business. The bank has since grown significantly and has more than doubled its asset base since 2012. Its shareholders equity has grown at a similar pace and stood at P9.8 billion as of September 30, 2016, while its branch network expanded from 78 branches in 2012 to 139 branches in 2016.
In the years ahead, he said the bank will remain focused on SMEs and is set on being the bank of choice in this market segment.
“The bank’s plans revolve around strengthening our relationships with the communities and businesses that we serve. We will continue to expand our reach by putting up more branches, especially in high-potential and fast-growing cities in the provinces. We have also very recently established an MIS unit that will serve a key function in the monitoring, analysis, and financial planning of our key business units,” Mr. Sison said.
In addition, he said that PBB seeks to acquire financial institutions with simple operations at an attractive price to help the thrift bank become a full-service financial institution in the long term.
“This long-term vision can only be achieved with the continued support of our shareholders, the wisdom of the Board of Directors, and the service of PBB’s employees,” he said.
Asked for his thoughts on the local banking industry, Mr. Sison said it’s still a competitive landscape as bigger institutions continue to be aggressive while the smaller ones focus on upgrading its products and improving its services.
“While things always change, some things remain the same,” he said. “Businesses that put the client first and are able to understand the needs of their customers will always thrive. Prudent management and patience will always go a long way. PBB became the largest standalone savings bank in the country because of its commitment to its clients. This commitment to serve will carry the bank forward, no matter the challenges that lay ahead.”