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PHILIPPINE National Bank (PNB) plans to sell more bad
loans and assets to further bring its ratio along
industry standards.
President Omar Byron T. Mier told reporters, after PNB
shares were again traded on the Philippine Stock
Exchange, that the bank plans to sell P4 billion worth
of bad debts in the next six to nine months.
“This
time, the portion of Ropoa [real and other properties
owned or acquired] is bigger, at two-thirds of that
amount, while the nonperforming loans, or NPL, is just a
third,” Mier said Wednesday in Makati City, where the
listing ceremonies were held.
PNB
shares resumed trading today as it listed 89 million new
shares it sold last month. The government sold 71.8
million shares at the same time. The sale raised P9.5
billion for the bank and the government.
Last
year, PNB’s bad asset mix was P15 billion of NPL, and
between P5 billion to P7 billion of Ropoa.
Mier
said that they are targeting to bring down the NPL ratio
from 15.89 percent as of December last year to along the
industry standard of between 5 percent to 6 percent.
The sale
of P11.7-billion in non-performing assets last year
reduced by P7.75 billion its nonperforming loans,
improving its asset quality from an NPL ratio of 28.17
percent in 2005.
Mier
said that it has begun disposing properties to Eton
Properties Philippines Inc., the real-estate arm of the
Lucio Tan Group that controls 66.66 percent of PNB.
PNB is
looking at transferring 14 properties to Eton
“representing our equity. These properties are being
reviewed and, once approved, would effect the transfer,”
Mier said.
The
disposal of these assets may improve the bank’s return
on equity that Mier said has been set at 18 percent.
The
additional shares sale gives PNB enough elbow room to
move towards its present goal of bagging the No. 2 spot
among 16 banks in terms of equity.
The
shares sale Wednesday boosted PNB’s capital adequacy
ration in anticipation of the Basel II requirements,
while boosting the bank’s plan to “expanding our loan
portfolio,” Mier said.
Asked if
the bank plans to acquire more banks, Mier said that PNB
is now focused on a merger with Allied Bank pending
before the Supreme Court.
“At the
moment, we will grow internally, operate separately,”
Mier said. He added that executives of both banks meet
twice a month for a detailed review of operations.
A merger
within six months is not far fetched once the high court
makes a favorable decision, he said.
Lender
PNB will “likely’’ boost profit by 20 percent to 25
percent this year, Mier said. Second-quarter profit rose
compared with a year earlier. He declined to provide
figures.
PNB is
the nation’s fifth largest commercial bank in terms of
resources. It is majority owned by business tycoon Lucio
Tan, one of three Filipino billionaires in the world. |
