MANILA, Philippines – Philippine National Bank (PNB), the main banking arm of tycoon Lucio Tan, has estimated that losses to the group as a result of the damage brought about by recent calamities could reach P800 million.
In a prospectus submitted to the Philippine Stock Exchange (PSE) in relation to its rights offering, PNB said “as a result of the typhoons Maring and Santi, the earthquake in Bohol and, in particular Super Typhoon Yolanda — which caused significant damage in Central Visayas and certain parts of Southern Luzon — the bank expects to incur losses as a result of claims for property damage by clients of the Bank’s non-life insurance company, PNB Gen.”
“While the amount of these losses, particularly with respect to losses arising as a result of Yolanda have not been fully assessed at this time, the bank currently estimates that these losses will be between P700 million and P800 million,” it said.
In addition, PNB said it is still currently assessing the impact of Yolanda on the bank’s owned and invested properties.
Despite these expected losses, PNB said it has competitive strengths relative to the banking sector.
“The bank believes that it is well-positioned in the robust Philippine banking sector. The Philippines has one of the lowest banking penetrations in Asia, leaving significant headroom for growth,” it said.
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According to the Economist Intelligence Unit, loan growth is expected to be strong at 13.5 percent on average over the next five years, driven by strong domestic consumption and favorable demographics.
The bank’s scale, reach, business mix, product offerings and brand recognition have made it among the leading financial institutions in the Philippines.
As of Sept. 30, 2013, the bank said it is the Philippines’ fourth largest private commercial bank in terms of total assets, deposits, net loans and receivables.
The bank it has one of the most extensive branch networks among its competitors in the Philippines. As of end-September 2013, it has 656 domestic branches and offices and 854 ATMs.
Its branches and ATMs, it said, are strategically located to maximize market potential and cover areas where competitors are less present, making financial services accessible to untapped customers and investment opportunities.
It also said that the bank’s extensive distribution network allows for a strong deposit gathering capability and the ability to sell and distribute fee-generating product lines such as bancassurance, trust, fixed-income securities and credit cards.
According to Bangko Sentral ng Pilipinas (BSP) data, PNB’s domestic branches and offices comprised approximately 14 percent of the total number of branches of all private commercial and universal banks in the Philippines as of June 30, 2013. Likewise, its ATMs make up about 8.1 percent of the total number of BancNet ATMs of commercial and universal banks.
