Philippine Business Bank (PBB) is set to raise as much as P5 billion from its planned issuance of long-term negotiable certificates of time deposits (LTNCD), or high-yielding deposits.
Still subject to prior approval of the Bangko Sentral ng Pilipinas, PBB has gotten the go-signal from its board to offer and issue to the public LTNCDs up to a maximum aggregate principal amount of P5 billion.
The offer, which will be in two or more tranches over the period of one year, will be used to finance PBB’s expansion program.
Also, the issuance will boost PBB’s profitability by increasing its deposit base.
It was reported in the prior month that PBB is planning to put up 26 new business units throughout the country to firm up its presence in both restricted and nonrestricted areas for banking nationwide. The bank at this stage has identified sites for next year’s opening of new business units.
Of these new sites, five will be in Metro Manila, 10 in Luzon, five in the Visayas region and six in Mindanao. PBB’s branches currently number 94.
The bank’s net profit in the third quarter of this year was up by 60.71 percent from P624 million to P1 billion. Total net loan level at the end of September stood at P28.2 billion, up by almost 35.07 percent year-on-year.