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THE Monetary Board has allowed two banks to expand
their resources.
In a disclosure to the Philippine
Stock Exchange, China Banking Corp. said the Bangko Sentral ng
Pilipinas’ policy-making board approved on Thursday the lender’s
plan to issue P5 billion of long-term negotiable certificates of
deposit (LTNCD) to support its expansion and refinance its maturing
financial obligations.
Alex Escucha, China Bank
corporate information officer, said the lender began offering the
LTNCDs on Monday. He said China Bank would use the funds to support
its three- year expansion plan ending 2010.
China Bank plans to expand its
branches to 300 from the current 199.
“The key future of the
expansion process is the opening of the Manila Bank’s licenses,”
Escucha said.
“We will also use the fund to
refinance five year money maturing in the next 12 months,” he
added.
The bank’s net income grew 7
percent to P703 million in the first quarter of the year. This
translates to a 10.56-percent return on equity and a 1.60-percent
return on assets.
The bank has incurred higher
expenses as it expanded its network and processed the integration of
Manila Bank Corp.’s branches.
The Monetary Board also approved
BPI Direct Savings Bank’s plan to open a foreign currency deposit
unit to expand its products.
BPI Direct Savings Bank is a
phone and Internet bank serving overseas Filipino workers and their
families.
Based on its latest report, BPI
Direct has P1.6 billion in resources with total capital fund of P755
billion as of 2006. Its net income that year reached P49 million.
--Maricel E. Burgonio
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