|
The Philippine National Bank projects profit growth this year would
be moderate due to the cost of the bank’s integration with Allied
Banking Corp.
In a press briefing, Omar Byron T. Mier, PNB
president, said the merged entity is seen to post a slight
improvement in net profit to P3.5 billion this year from P3.3
billion last year.
In 2009, PNB projects to post a net income of P4
billion, which Mier said “includes integration cost.”
The stockholders of the PNB yesterday approved
the merger plan with Allied Bank.
Mier said the bank will focus on its core
businesses this year, particularly consumer loans, corporate loans
and remittance business.
In terms of loan portfolio, Mier said PNB hopes
to sustain expansion within the range of 10 percent to 15 percent
this year.
The bulk of the loan portfolio comprising 50
percent was extended to large corporations. The rest was distributed
to small and medium enterprises, 20 percent; consumer loans, 20
percent; and government, 10 percent.
Its remittance transactions last year reached
$2.2 billion last year. Of the total, PNB’s remittance volume
reached $1.8 billion and Allied Bank at $300 million.
Mier said the bank expects “profitability
improving in the next two years” after it completes the
integration process in the next 12 months, for which PNB will spend
P1.2 billion.
In terms of bad asserts, the bank plans to sell
its P24-billion worth of real and other assets in four tranches.
The bank aims to reduce its non-performing loans
to 7.75 percent this year from 9.6 percent.
PNB issued P6 billion unsecured subordinated
debt on June 19, higher than the issuance plan of P3 billion due to
strong demand.
The issue will further increase the bank’s
capital adequacy ratio to 22 percent from 19 percent, which will
strengthen its capital base to support its merger plan.
As a merged entity, PNB will become the
country’s fourth-largest bank in terms of assets reaching P388
billion.
-- Maricel E. Burgonio
|
