PNB open to acquisitions
PHILIPPINE NATIONAL Bank (PNB) is open to possible bank acquisition this year, its top executive said.
The Lucio C. Tan- owned lender prefers to buy another commercial bank should an opportunity arise, PNB President Reynaldo A. Maclang said in a recent interview.
“Yes, yes, we’re open. If the opportunity comes, bakit hindi? ( why not?),” Mr. Maclang said when asked whether PNB is open to possible acquisitions this year.
“We’d like a commercial bank,” he added, although noting that currently, there seems to be no big bank up for sale.
The country’s fifth largest lender in assets terms said last year that it is setting its sights on becoming one of the country’s three biggest banks.
Data from the Bangko Sentral ng Pilipinas showed that PNB is behind BDO Unibank, Inc. of the Sy family; Metropolitan Bank and Trust Co. of the Ty family; Bank of the Philippine Islands of the Ayala family; and stateowned Land Bank of the Philippines in terms of assets as of end-December 2015.
LT Group, Inc. President Michael G. Tan had said PNB needs to acquire “to be able to get to that” level. PNB is the banking arm of the holding firm.
As of the first quarter, the bank’s total consolidated resources stood at P699.1 billion. Its total capital adequacy ratio stood at 17.77% as of end-March, well above the central bank’s 10% minimum requirement. Its common equity Tier 1 ratio of 16.91% also exceeded the minimum ratio of 8.5%.
United Coconut Planters Bank was earlier put on the auction bloc, although the sale of the government’s 73.9% stake was halted by an indefinite stay order last year. San Miguel Corp.’s controlling stake in Bank of Commerce was also reported to be up for grabs but talks with potential buyer Mizuho Financial Group, Inc. broke down because of a disagreement over the price, Bloomberg earlier said.
PNB had said that aside from acquisitions, it can also piggyback on its international footprint, one of the largest among all Philippine banks, and use that platform to grow the lender. It has at least 70 overseas branches and offices in 16 countries on top of its 669 branches and 954 automated teller machines nationwide as of end-March.
It can also build on its relationship with Philippine Airlines, Inc. for some cross-selling.
The Lucio C. Tan- led lender booked a net income of P2.6 billion in the January to March period, 116% higher than the P1.2 billion posted during the first three months of 2015.
In 2015, the bank raked in P6.3 billion in consolidated net income, up 15% from the previous year’s P5.5- billion net profit, driven by continued improvements on earnings from its core businesses.
PNB shares closed at P57.80 apiece on Monday, down five centavos or 0.09% from its previous finish.