Savings bank

Integration nets for savings banks PNB additional capital P7.5-B

The Philippine National Bank (PNB), headed by tycoon Lucio Tan, recently recovered 7.5 billion pesos of excess capital from the PNB Savings Bank, which was merged into the parent bank.

PNB acquired the assets and assumed the liabilities of PNB Savings in 2018. The latter’s corporate name was changed to Allied Integrated Holdings Inc. (AIHI) and its articles of association were amended.

The integration was intended to provide a more efficient banking experience, as well as serve a wider customer base. Customers of the former savings bank, on the other hand, will have access to PNB’s diverse portfolio of financial solutions upon full integration.

The consumer lending business operated through PNB Savings was also seen to benefit from PNB’s ability to raise funds efficiently at low cost.

The integration was approved by the Bangko Sentral ng Pilipinas in 2019 and became effective in March 2020. The savings bank thus ceded its banking license to the local central bank.
The savings bank was later transformed into a holding company, AIHI, as evidenced by its amended statutes.

On February 10, the Securities and Exchange Commission approved the amended articles and regulations as well as the reduction of the authorized share capital of AIHI from 15 billion pesos to 3 billion pesos divided into 30 million common shares with a par value 100 pesos each. .

Of the subscribed and paid-up capital of 10.5 billion pesos of GNP in AIHI, the latter returned 7.5 billion pesos to the parent bank.

“The merger plan is not applicable since PNB purchased substantially all of the assets and assumed substantially all of the liabilities of AIHI. Funds from the purchase will now be returned to PNB, as a bank parent, in the form of return of capital,” the disclosure reads.

—Doris Dumlao-Abadilla

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