PBCom aims to increase up to P5B through the issuance of long-term deposit notes

Lucio co-directed distribution mogul Philippine Bank of Communications joined the movement of banks blocking long-term financing by offering high-yielding deposit notes.

In a statement on the Philippine Stock Exchange yesterday, PBCOM said that its executive committee had approved the filing of a request for the lifting of 5 billion pesetas from a long-term deposit certificates placement (LTNCD).

The issue, which will be carried out in one or more installments, is subject to In the disclosure, the PBCOM stated that the expected proceeds of issue would be used by the bank for "general financing of enterprises, in particular long-term loans. "

LTNCDs are negotiable term deposit certificates issued by banks. They have higher returns than regular term deposits or savings accounts

Unlike regular term deposits, LTNCDs can not be predetermined by holders. However, investors may trade or transfer their holdings in the secondary market before maturity. The interest on LTNCD is tax free for individual investors if the instrument is in the name of the individual holder and is held for at least five years.

Currently, PBCOM ranks 20th among the 43 commercial and universal banks in the country. of about P99 billion. It is valued by the stock market at about 9.25 billion pesos

In the first quarter, its consolidated net profit rose to 133.87 million pesos, against 133.74 million pesos during the same period. ;last year. This increase is attributable to the growth of 18% in interest income on loans and receivables.

The bank's loan portfolio amounted to 55.57 billion pesos at the end of March and the deposit base at 74.95 billion pesos. The ratio of adequacy is 15.25% of assets at risk, well above the minimum requirement of 10%.

Return on average equity was 7.08% while average return on assets was 0.74%. – DORIS DUMLAO-ABADILLA

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