LISTED Philippine Business Bank (PBB) is planning to raise funds through a proposed conversion of preferred shares into common stock and the issuance of long-term negotiable certificates of time deposits (LTNCDs) amounting to P10 billion.
In a disclosure on Thursday, PBB said the funds to be raised “will allow the bank to capitalize on the attractive lending opportunities as the Philippine economy continues to expand.”
PBB said last week that its board has authorized the bank’s management team to initiate capital raising discussions.
“Subject to regulatory approvals, PBB will convert existing preferred shares to common stock to further strengthen its balance sheet,” it said.
In its disclosure on Thursday, PBB said the holders of the preferred shares “have indicated their strong desire to convert to common shares pending the finalization of the terms of the transaction.”
PBB reported net profit of P466.1 million in the first nine months of last year, down 30.4 percent from the P670 million recorded in the same period in 2016, on lower trading gains. But core income for the period grew 50.6 percent to P673.7 million.
Net interest income for the third quarter of 2017 was up 19 percent at P2.2 billion. This was driven by higher loans and other receivables, which rose 37.4 percent to P65.1 billion.
PBB currently has 142 branches after the transition of Bataan Savings and Loan Bank (BSLB) branches to PBB in October. PBB is looking at increasing its branch network to 152, with 10 more branches from the acquired Insular Savers Bank.