Philippine Daily Inquirer
7:39 pm | Sunday, December 22nd, 2013
Tycoon Lucio Tan-led Philippine National Bank has approved a P10-billion fresh equity infusion into Allied Savings Bank, a thrift bank that became its wholly owned subsidiary following its merger with Allied Banking Corp.
The planned capital infusion into the thrift bank shows the banking group’s intention to grow its consumer lending business, similar to its peers such as the thrift bank units of Bank of the Philippine Island (BPI Family), Metropolitan Bank and Trust Co. (Philippine Savings Bank) and Rizal Commercial Banking Corp. (RCBC Savings).
PNB is raising P15 billion in fresh equity from a stock rights offering. The bank is selling up to 163 million common shares to existing shareholders from Jan. 27 to Feb. 3 next year while listing will be on Feb. 11.
The bank said it intended to use the proceeds to build and refocus its consumer lending business through capital infusions into Allied Savings Bank, mitigate the reduction in the capital adequacy ratio once some of its tier 2 capital instruments become ineligible as capital by the end of the year with the implementation of Basel 3 effective January 2014.
Basel 3 capital adequacy ratio framework introduces a complex package of reforms designed to improve the ability of banks to absorb losses, extends the coverage of financial risks and requires stronger firewall against periods of stress. Doris C. Dumlao
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Tags: Business , economy , Lucio Tan , News , Philippine National Bank , Rizal Commercial Banking Corp.
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