Banco de Oro keen on buying into PBCom

Mid-sized Philippine Bank of Communications disclosed on Tuesday it has a second suitor keenly interested in its network of 64 branches and 41 automated teller machines (ATMs). “We confirm that Banco de Oro (BDO) has submitted a proposal to invest in PBCom," corporate secretary Bernard B. Lopez said in a disclosure to the Philippine Stock Exchange. The other publicized suitor of PBCom is ISM Communications of Marcos-era Trade Minister Roberto V. Ongpin. Nationwide, BDO has 726 operating branches, including one in Hong Kong, and 1,430 ATMs. As of end-March, its resources totaled P955.37 billion. BDO’s first quarter net income after tax this year reached P2.46 billion. PBCom reported its operating income in the first quarter was P507 million, with a net income of P71 million, and cash amounting to P329.5 million. Its latest balance sheet showed assets of P39.55 billion and liabilities of P36.42 billion. The Philippine Deposit Insurance Corp. (PDIC) extended emergency financial assistance to PBCom in 2004. PDIC earlier said the P7.6 billion it loaned PBCom is fully-collateralized by government securities so that “public interest is safeguarded at all times." PDIC is the custodian to 67 percent “controlling interest" in PBCom. The banks’ major shareholders entrusted their shares to PDIC in keeping with the financial assistance agreement reached seven years ago. According to the agreement, shareholders were supposed to have sold their 67-percent stake in PBCom in 2009. The Bangko Sentral ng Pilipinas, which imposed a moratorium on new bank branches in Metro Manila, has been encouraging banks to consolidate. — ELR/VS, GMA News