PNB seeks approvals to build new 60-story HQ in Buendia

Billionaire Lucio Tan is seeking regulatory approvals for a planned state-of-theart and world-class 60-story building that would serve as the headquarters of banking unit Philippine National Bank (PNB).

PNB first senior vice president Alice Cordero said in a press conference the bank has applied for proper approvals with the Bangko Sentral ng Pilipinas (BSP) for the proposed ‘legacy’ building that would rise in the foreclosed 8,000 square-meter property from presidential advisor on economic affairs and information technology communications Ramon Jacinto.

“We are on the last segment and we are very optimistic. It is a legacy that we are going to put up in Makati, the design is world-class,” she said.

Cordero said the bank has tapped a world-renowned architectural firm based in New York for the development of the property situated at the corner of Gil Puyat Avenue and Paseo de Roxas in Makati City.

She said a mixed-use office, residential, and commercial building would rise in the property. The proposed building would also feature a helipad as the tobacco and airline magnate is always traveling by helicopter.

Nelson Reyes, PNB executive vice president and chief financial officer, said the bank is looking for joint venture partners to develop the prime property.

“The structure will be part of a joint venture that is why we have to seek approvals. The investments in the joint venture is still being finalized,” he said.

The transaction would also have to be approved by the Securities and Exchange Commission (SEC) as well as the Philippine Competition Commission (PCC).

The country’s fifth largest bank has been holding office at the PNB Financial Center along Diosdado Macapagal Boulevard in Pasay City since 1995.

Reyes said PNB may post a 13 to 14 percent growth in net income this year as it tries to sustain the strong growth of its core lending and deposit businesses.

“We do expect our net income to grow at similar pace, mid-teens, but this time the major driver for that would be the increase in core income,” he said.

PNB registered a 14 percent growth in earnings to P8.2 bil- lion last year from P7.2 billion in 2016. It raised P3.9 billion from the sale of foreclosed assets last year, higher than the P2.5 billion recorded in 2016.

The bank’s loan book rose by 17 percent to P502.1 billion, while its deposit base went up by 12 percent to P637.9 billion.

“The immediate focus of the bank over the last few years is really to grow our core income essentially lending, deposits and fees,” he said.

In terms of lending, Reyes said the bank is increasing its exposure to the commercial sector to 35 percent from 33 percent as well as the consumer to 15 percent from 10 percent.

On the other hand, PNB plans to reduce its exposure to the corporate segment from the current level of 52 percent.

Reyes said the bank is taking advantage of the impending rise in interest rates.