MANILA, Philippines – China Banking Corp. is pumping P2 billion in fresh equity to its thrift bank arm to beef up its capital base and bankroll its aggressive expansion program.
Corazon Morando, vice president and corporate secretary of China Bank, said in a disclosure to the Philippine Stock Exchange (PSE) P1 billion would be infused this month and another P1 billion in December to China Bank Savings Inc. (CBSI) to support its business expansion.
In total, China Bank has infused P6.01 billion in additional equity into CBSI since September 2014.
China Bank bought out the 87.51 percent stake of the Puyat family in the The Manila Banking Corp. in 2007 afterwhich the thrift bank was renamed to CBSI the following year.
It has raised its interest in CBSI to 98 percent after buying out the holdings of minority shareholders.
The bank owned by retail and banking magnate Henry Sy has been gobbling up smaller banks including Planters Development Bank in 2014 and Unity Bank in 2012 to fast track its expansion nationwide.
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The China Bank Group also includes CBC Insurance Brokers Inc., Bancassurance affiliate Manulife China Bank Life Assurance Corporation (MCBLife), CBC Properties and Computer Center Inc., China Bank Capital Corp. (CBCC), and CBC Forex Corp.
China Bank through CBCC acquired ATC Securities Inc. this year to set up its own brokerage firm, China Bank Securities Corp. CBCC also incorporated a securitization company, CBC Assets One (SPC) Inc.