Lucio Tan to merge PNB, PNB Savings Bank
MANILA, Philippines – Lucio Tan is merging the Philippine National Bank (PNB) with the PNB Savings Bank to strengthen the Tan group's consumer lending business.
Tan disclosed to the Philippine Stock Exchange on Friday,September 28, that PNB's board of directors approved the acquisition of PNB Savings Bank's assets and assumption of its liabilities in exchange for cash.
Specifically, the banks, once merged, would have an asset base of P932.7 billion. This is made up of PNB’s total resources at P876.2 billion in end June, along with PNB Savings Bank's P56.5 billion as of end June.
The full integration of the bank’s thrift banking arm remains subject to regulatory and other necessary approvals from the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC), and other organizations.
Merging the banks, according to outgoing PNB president and CEO Reynaldo Maclang, would provide PNB Savings Bank with benefits derived from PNB's ability to raise low-cost funding.
The merger will also spread PNB further, having a domestic footprint of 707 branches made up of 644 PNB locales and 63 PNB Saving Bank branches.
Jose Arnulfo Veloso will become PNB's new president and CEO beginning November 16. – Rappler.com