PBCom shareholders approve authorized capital increase to P27B

The Philippine Bank of Communications (PBCom) on Wednesday announced it will raise its authorized capital to P27 billion from P17.5 billion, after its shareholders approved the move during its annual meeting.

 

“The increase will be supported by a P2.8 billion infusion from the Nubla and Chung families, thereby increasing the capitalization of the bank to more than P8 billion,” PBcom noted in a statement.

 

For the rest of the year, the bank expects its performance to be more competitive after the bank’s reorganization in mid-2011, PBcom said.

 

“After we took over in July 2011, we began a careful process of cleaning up the bank’s balance sheet and streamlining the organization… I expect that by the end of the year, PBCom will give its peers a little bit more competition than used to,” Eric Recto, the bank’s co-chairman, said in the same statement.

 

The new investors were led by former Trade Minister Roberto Ongpin, Recto, ISM Communications Corporation, Gregorio Yu, Edgar “Injap” Sia and the Northstar Pacific group of Indonesia.

 

The group acquired 97 percent of PBcom.

 

“All the regulatory approvals including that of the Bangko Sentral of the Philippines for the acquisition were completed in December last year,” the statement read.

 

PBCom said it a made P796 million in profits last year, up 36 percent from 2010.

 

The bank noted it is seeking Securities and Exchange Commission approval to remove its preferred shares for a single class of shareholders.

 

During Wednesday’s annual meeting, PBcom shareholders re-elected Ongpin as chair, Recto as co-chair, Mario Locsin as vice chair, Henry Uy as president and chief operations officer, and Gregorio Yu as executive committee chairman. —With Rouchelle Dinglasan