Today, Philippine National Bank (PNB) will be holding its Annual Stockholders Meeting, the 2nd time virtually. The new PNB Board of Directors are: Florido Casuela, Leonilo Coronel,Edgar Cua,Atty. Estelito Mendoza, Federico Pascual,Sheila Pascual, Atty. Wilfredo Sanchez,Carmen Tan, Kapitan Lucio Tan, Lucio Tan 111, Michael Tan,Vivienne Tan, President Wick Veloso, Angelito Villanueva and Domingo Yap.
New directors are Lucio Tan III, a millennial, summa cum laude in Electrical Engineering and Computer Science from Stanford. He will bring fresh insight and perspective especially in the area of digitalization. Atty. Sanchez, a tax expert is well-known in the business and legal community. Mr. Villanueva is an accountant with operations and banking expertise.
As the BSP has a rule on the independent director term limit of 9 years from 2012, I will be stepping down as PNB Chairman and independent director. It was a privilege and honor to have served PNB as Chairman for 15 years and director for 20 years. Also stepping down due to the term limit is PNB Vice Chair Rico Alfiler.
Looking back in Feb 2000, I had just returned from a family vacation after retiring from Citibank as Vice President/Managing Partner. To my surprise, Department of Finance (DOF) Secretary Jose Pardo handed me my appointment papers as Undersecretary of Finance already signed by the President of the Philippines! How then can I say No? Coming from the banking sector, I took the role of the Secretary’s alternate to the boards of the Bangko Sentral (BSP) Monetary Board, Land Bank, and PDIC. IMF and the World Bank representatives were frequent visitors at DOF and our main topic was government owned PNB that incurred a loss of P13 billion in 1999.
My stint with DOF was short lived when all the DOF undersecretaries resigned prior to EDSA 11. New DOF Secretary Alberto Romulo asked me to head a government agency. I said that I will be more open to a directorship position having just retired from Citibank. Soon after, DOF Undersecretary Kune Gison called if I could be nominated as a government representative in PNB which BSP Governor Rafael Buenaventura supported. I accepted. PNB then was 45-45 percent owned by the government and the group of Kapitan Lucio Tan.
In 2003 and 2004, Secretary Romulo and Nitz Amatong asked me to consider the chairmanship of PNB. I was already contented in my role then as Director and Chairman of the Executive Committee. In 2005, my brother, GMA 7 Chairman Henry Gozon told me that I will be Chairman of PNB. I brushed it aside as an old story of two years ago. But then he said, “I just heard it last night from DOF Sec Cesar Purisima.” When I asked Secretary Cesar about it, his response was “Yes, it’s true but don’t worry, it will just be for three months.” The 3 months became 15 years.
PNB is an excellent turnaround story. During the early rehabilitation years, PNB focused on the “bad bank, good bank” strategy. Equal focus was given to the collections and workout of non-performing loans as well as growing the loan portfolio and other businesses. People is also key. The right people to implement the strategies. The banks board and senior management were experienced, competent and professionals.
Former Chair Paquito Dizon said that the PNB Board was the “Best Board“ he has worked with. The PNB board has been strong with the synergy and combination of seasoned businessmen led by Kapitan, regulators and from government: former BSP Deputy governor Fely Miranda, PDIC President Norberto Nazareno, Ric Tan, former Energy Secretary Vince Perez, former DOF Undersecretary Eric Recto etc, and professionals and bankers :Vicot Panlilio, Omar Mier, Gloria Climaco etc.PNB was able to prepay the PDIC government loan four years ahead of schedule and PNB was fully privatized in 2007.
PNB is the fourth largest domestic private commercial bank in 2020 with capital of P155 billion and assets of P1.2 trillion. It recently received from the SEC and ICD a three Golden Arrow recognition as one of the model enterprises for corporate governance in the Philippines. PNB also received Best Bank for Corporate Social Responsibility from Asiamoney and Best Managed Bank and Best CEO from The Asian Banker. PNB is the first universal bank in the Philippines to be certified as gender-equal after receiving its Economic Dividends for Gender Equality (EDGE) Certificate.
“Today as I step down as Chairman, my heart is full of gratitude to the PNB board, the stockholders, the Tan family and the Philnabanker family for their support and opportunity to have been of service to the Bank. And to the DOF and BSP for starting my PNB journey.”
I wish the new PNB Board continued success. PNB to me will always be PiNakaBest Bank!
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Ms. Tarriela is the first woman chairman of the Philippine National Bank. She is a former Undersecretary of Finance and the first Filipina vice-president of Citibank N.A. She is a trustee of FINEX and an Institute of Corporate Directors fellow.
She established Flor’s Garden in Antipolo, an ATI Accredited Extension Service Provider and a DOT Accredited Agri Tourism Site.