BPI completes terms for P10B stock rights offer

Bank of the Philippine Islands (BPI), the banking unit of conglomerate Ayala Corp., has finalized the terms of its planned P10-billion stock rights offering. BPI priced the rights offer at P32.50 per share, the bank said in a disclosure with the Philippine Stock Exchange. The offer price was based on a 15-day volume weighted price average of the bank's common shares subject to a 30.5-percent discount, BPI said. The bank said it will offer 307.692 million common shares to eligible shareholders. The offer period is Aug. 9-13 while the listing date is Aug. 23. The stock rights offer reflects the bank's aim to grow and strengthen its market-leading businesses and core franchises. It also serves to further solidify its industry-leading capital adequacy and financial strength. During the first quarter of this year, The bank reported its net income dipped to P2.7 billion in the first quarter from P2.8 billion a year earlier. Total revenue was flat at P8.9 billion with a 54 basis-point erosion in net interest spreads and weaker trading profits. Compensating for the drop in spreads was a P70-billion or 11-percent improvement in average asset base. BPI's total asset base went up to P695 billion or 8 percent more in the same comparable period, as deposits expanded by 8 percent to P558 billion mainly from low-cost peso deposits. —JE/VS, GMANews.TV