The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved the upgrade of the commercial banking license of Philippine Bank of Communications (PBCOM) to that of a universal bank.
In a disclosure to the Philippine Stock Exchange, PBCOM asid the license upgrade provides additional capabilities for the bank to invest in non-allied enterprises and allows the bank to expand its product and service offerings.
“We are proud and thankful for this privilege to be a Universal Bank. Our steady growth the past years beginning with the entry of the Lucio Co Group has been noteworthy,” said PBCOM Chairman Eric O. Recto.
He noted that, “We now have a solid capital base from which we can expand our banking services in order to serve the needs of our valued customers.”
“We, the shareholders and Management of PBCOM, are all excited about this new chapter in our history and would like to give our thanks to the Bangko Sentral ng Pilipinas for having guided us through this journey,” Recto added.
PBCom submitted an application to upgrade its existing license to a universal bank classification with the BSP last Dec. 7.
Retail magnate Lucio Co acquired a controlling stake in PBCOM in 2014 from Roberto V. Ongpin’s ISM Communications Corporation for P1.95 billion.
ISM Communications said its board of directors has accepted the offer of Co, through VFC Land Resources, Inc., to buy ISM’s 59.24 million PBCom shares at P33.00 per share.
PBCom had earlier allowed Co’s P.G. Holdings, Inc., to subscribe to 181.08 million PBCom common shares. The share subscription increased the Bank’s issued shares to 480.65 million shares and gave P.G. Holdings, Inc. a 37.7 percent stake in PBCom.
Under the bank’s expanded capital (following the subscription of P.G. Holdings), the PBCom shares being acquired by VFC Land Resources is equivalent to a 12.3 percent interest in the bank—adding up to just a couple of thousand shares shy of a 50 percent stake.
Founded in 1939, PBCOM has its roots in Binondo, Manila and now operates 95 branches across the country.
It has complemented its branch network with its digital corporate cash management services (PBCOM POP-Business), online and mobile banking (PBCOM POP-Personal), and its cloud-based digital accounts via the PBCOMobile app.