Bank of Commerce, the 17th largest bank controlled by San Miguel Corp., is seeking a universal bank license to expand services and strengthen its presence amid Asean integration.
BankCom president and chief executive Roberto Benares said the bank would soon increase its capitalization.
“It is imperative that we get bigger, stronger and better in the face of Asean integration and the rigid competition that we expect from it. A unibank status will afford us the flexibility we need to expand our services and grow our presence here to achieve scale,” Benares said in a statement Monday.
He said with a universal banking license, BankCom would be able to participate in upcoming debt and equity capital fund raising.
Banares said the private sector would need to raise funds in the coming years to finance capital expenditure in infrastructure and capacity expansion led by a fast growing Philippine economy.
He expressed confidence that BankCom along with other local banks could compete against bigger potential new entrants from the region and benefit from a regional market of some 600 million potential customers.
The government further liberalized the domestic banking industry in mid-2014, which paved the way for the entry of nine Asian banks in the country. Bangko Sentral ng Pilipinas earlier said more Asian lenders expressed interest to enter the industry because of the big potential for growth in the country.
Bank of Commerce traces its origins to the Overseas Bank of Manila, which was incorporated in December 1963.
San Miguel Corp., through San Miguel Properties Inc. and the San Miguel Corporation Retirement Fund, signed a 34.3-percent subscription agreement with Bank of Commerce in October 2007, which was approved by the Monetary Board in May 2008.
San Miguel via property arm San Miguel Properties Inc. and San Miguel Retirement fund signed another subscription agreement with Bank of Commerce giving the combined stake in the bank to 51.1 percent in May 2009.
San Miguel Properties Inc. acquired 7.16-percent interest in the bank in 2011, thereby increasing the San Miguel Group’s stake to 58.2 percent.