PNB may sell shares to boost capital
MANILA, Philippines - Lucio Tan-led Philippine National Bank (PNB) may raise fresh funds to boost capital ahead of the adoption of a more stringent international regulatory framework for banks.
Michael Tan, president of LT Group Inc., the holding firm for the Tan family's businesses, said PNB may sell new shares.
"The initial plan, subject to changes, is to offer new shares," he told reporters following LT Group's stockholders' meeting Wednesday, June 19.
But Tan said "we're still considering options" on how to go about PNB's capitalization.
"Our banking unit must be fully capitalized to realize market leadership," he noted.
Universal and commercial banks are required to adopt by January 1, 2014 new capital adequacy ratio requirements under Basel 3. This global regulatory framework was developed with the aim of further improving banks' ability to absorb losses during financial crises.
Tan said if the share sale pushes through, the Lucio Tan group will subscribe to the offer "to maintain the percentage of our ownership."
PNB is the surviving entity in the February 9 merger with another Tan-controlled bank, Allied Banking Corp.
PNB, now the country's fourth-largest private bank, has about 650 branches nationwide and total assets of more than P514 billion. - Rappler.com