The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, said Thursday it approved the upgrade of the banking license of Bank of Commerce, an affiliate of San Miguel Corp., from commercial to universal bank, subject to regulatory requirements.
Being one of the country’s most progressive banks, Bank of Commerce will now be able to provide a much broader range of products and services essential to conglomerates and businesses, particularly those expanding in 2022 as the economy recovers strongly from the pandemic.
SMC president and chief executive Ramon Ang, who is also the chairman and president of SMC Equivest Corp., said the strong balance sheet of Bank of Commerce and the opportunities both inside and outside the SMC ecosystem, would pave the way for a new phase of growth for the bank.
“The banking sector will be crucial to our country’s economic recovery from the pandemic. BankCom has a strong capital position from the P5.5-billion infusion of SMC Equivest Corp. and the potential proceeds from its IPO,” Ang said.
Bank of Commerce president and chief executive Michelangelo Aguilar said the bank’s expanded banking services would allow it to fortify its presence in the domestic market.
He said this would deepen relationships with clients and unlock cross-sell opportunities which it intends to convert into additional revenue streams.
The bank is also looking to provide clients access to attractive, whole-life and investment-based insurance products, through a strong bancassurance offering.
Bank of Commerce filed a registration statement with the Securities and Exchange Commission in November, and an application with the Philippine Stock Exchange this month, in connection with the proposed initial public offering of its common shares.
The common shares have an indicative offer price of up to P12.50 per common share and are intended to be offered in the first quarter next year.
BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., and PNB Capital and Investment Corp. have been engaged as joint issue managers, joint lead underwriters and joint bookrunners for the IPO.
Total assets of the bank grew 14 percent to P195 billion as of end-September from P171 billion as of end-2020.
Its deposit base spread across 140 branches rose 14 percent to P167 billion as of September from P149 billion as of end-2020.
The bank’s net income grew by 26 percent in the first nine months from a year ago.
