MARKET HEADLINE: SHORT SELLING BY OCTOBER

Philippine National Bank
#1
Business Profile:

The Philippine National Bank (the “Bank”), the country’s first universal bank, is the fifth largest private local commercial bank in terms of assets as of December 31, 2010. The Bank was established as government-owned banking institution on July 22, 1916. As an instrument of economic development, the Bank led the industry through the years with its agricultural modernization program and trade finance support for the country’s agricultural exports, pioneering efforts in the Overseas Filipino Workers (OFW) remittance business, as well as the introduction of many innovations such as Bank on Wheels, computerized banking, ATM banking, mobile money changing, domestic traveler’s checks, and electronic filing and payment system for large taxpayers. The Bank has the widest overseas office network and one of the largest domestic branch networks among local banks.

Pursuant to its policy of rationalizing its involvement in corporate ventures and privatization of Government Owned and Controlled Corporations (GOCCs) under Proclamation No. 50, the Government offered to the Philippine public 30% of the outstanding shares of the Bank in June 1989. The Government further disposed 13% and afterwards, 7.2% of its outstanding shares in the Bank to the Philippine public in March 1992 and December 1995, respectively.

In July 2002, the Bank secured the consent of the Securities and Exchange Commission (SEC) to undergo a quasi-reorganization which reduced the par value of its shares from P60.00 to P40.00. This was done in order to accommodate the P7.8 billion debt-to-equity conversion of the Philippine Deposit Insurance Corporation (PDIC) through the issuance of 195,175,444 preferred shares. These events resulted in the Government, through the PDIC, increasing its stake in the Bank to 44.98% at par with the 44.98% voting stake of the Lucio Tan Group (LTG)*.

In August 2005, the Government offered 186,033,908 shares for sale out of its 257,845,799 shares in the Bank. The companies and persons affiliated/associated with the LTG, as the other major stockholders, exercised their right of first refusal, reducing the Government’s aggregate share to 12.5% and raising that of the LTG to 77.43%.

The Bank concluded its 5-year Rehabilitation Plan as approved by the Bangko Sentral ng Pilipinas (BSP) in May 2007. The Bank also settled its P6.1 billion loan with PDIC in June 2007, more than four (4) years ahead of the loan’s due date. The loan repayment was a clear indication of the Bank’s renewed financial health.

In August 2007, the Bank completed its Tier 1 Follow-On Equity Offering when it raised about P5.0 billion in Tier 1 Capital. Together with the sale of 89 million primary shares, 71.8 million secondary shares owned by the Government thru the PDIC and Department of Finance (DOF) were sold to the public, paving the way for a complete exit of the Government from the Bank. Notwithstanding its status as a private bank, the Bank remains one of the Government’s depository banks, having been granted by the BSP the authority to accept government deposits on a continuing basis since the Bank has successfully met the BSP’s requirements.

Source: Annual Report 2010

Results of Operations:
  • The Group reported a consolidated net income of P 0.3 billion for the three months ended March 31, 2011, down by 64% or P0.6 billion compared to P0.9 billion net income for the same period last year, attributed mainly to losses in mark to market valuation of investments securities.
  • Despite market adversities, total interest income increased by P0.1 billion to P3.1 billion for the three months ended March 31, 2011 from P3.0 billion in the same period last year which was attributed mainly due to higher average yield rate on loans and receivables. Interest expense slightly up P0.1 billion from P1.2 billion to P1.3 billion.
  • Net service fees and commission income was slightly lower at P0.5 billion compared to P0.6 billion reported for the same period last year.
  • For the first three months of 2011, fee-based and other income was lower by P0.7 billion to P0.6 billion from P1.3 billion. This was brought about by mark to market losses on trading and investment securities gains of P0.2 billion as of March 31, 2011 or a decrease of P0.7 billion compared to the reported gains of P0.5 billion for the same period last year. There was also a decrease in Foreign exchange net gains by P0.2 billion partially offset by P0.2 billion increment in miscellaneous income mainly from gain on sale of foreclosed properties.
  • Administrative and other operating expenses decreased by P0.1 billion from P2.6 billion to P2.5 billion, largely due to lower provision for impairment and credit losses by P0.2 billion partly offset by increase in miscellaneous expense by P0.1 billion.
  • Provision for income tax for the three months ended March 31, 2011 and 2010 amounted to P0.1 billion and P0.2 billion, respectively.

Source: Q12011 Financial Report
PNB to raise over P10B from sale of debt, assets

MANILA, Philippines - The Philippine National Bank (PNB) aims to raise at least P5.5 billion from the sale of unsecured subordinated debt and another P5 billion from the sale of real and other properties acquired (ROPA) to beef up its capital and bankroll its expansion program.

PNB president and chief executive officer Eugene Acevedo said in an interview with reporters after the bank’s stockholders’ meeting yesterday that it intends to dispose of P5 billion of ROPA this year.

PNB has also started selling of P5.5 billion worth of unsecured subordinated debt qualifying as Tier 2 capital callable with no step-up on June 2016.

The offer size that could be inceased based on oversubscription would end on June 10. Arrangers include PNB and ING Bank NV while selling agents include First Metro Investments Corp. and Multinational Investment Bancorporation. PNB Capital and Investment Corp. as well as Allied Banking Corp. would act as limited selling agents.

[b]“We are going to put up 15 branches to 20 branches before the end of the year. We are also moving unprofitable branches to locations which make more sense,” he added.

Acevedo said PNB hopes to exceed the income registered last year despite the sharp decline in the first quarter of the year.

PNB’s net income jumped 60 percent to P3.53 billion last year from P2.2 billion in 2009 while its assets inched up by 6.6 percent to P302.13 billion from P283.3 billion.

“[b]We aim to beat our 2010 income
,” Acevedo told the bank’s stockholders yesterday at the Century Park Hotel.

However, PNB’s earnings plunged 64 percent to P319.78 million in the first quarter of the year from P888.98 million in the same quarter last yeardue to heavy losses in mark-to-market valuation of investments securities.

He said the bank has a few tricks up its sleeves to make sure that it beat its net income last year. “One quarter does not make a year,” Acevedo stressed.

http://www.philstar.com/Article.aspx?pub...eId=691693[/b][/b]

Note: View above link to read the whole article.


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#2
PNB closes Tier 2 sale, raises P6.5B

LUCIO TAN-controlled Philippine National Bank (PNB) yesterday raised P6.5 billion from the sale of lower Tier 2 notes, closing its books two days before schedule after investors deluged it with orders.

“We are closing the order book today (Wednesday), two days ahead of schedule for the first tranche of the lower Tier 2 issuance due to oversubscription,” Horacio E. Cebrero III, PNB executive vice-president and head of Treasury, told BusinessWorld in a text message yesterday.

“We closed it ahead of schedule as we do not want to get more tenders from the market, knowing we can no longer accommodate their offers,” he said.

The debt sale was launched on May 30 and was supposed to run until June 10.

The bank was also supposed to raise P5.5 billion from the exercise but raised it to P6.5 billion instead after encountering high demand from retail and institutional investors.

The notes will pay an interest of 6.75% and will mature in 2021. The bank can exercise a call option after five years.

http://www.bworld.com.ph/content.php?sec...B&id=32784
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#3
Stock is a sleeper. Accumulate then hold for a year.
The World is a Vampire . . .
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#4
(06-30-2011, 05:05 PM)StockJunkie Wrote: Stock is a sleeper. Accumulate then hold for a year.

Dapat talaga ikaw yata umungkat neto, breakout sya today sa isang major resistance line for that you get 1 point from meBig GrinBig GrinBig Grin
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#5
PNB to redeem P5.5 B in debt notes

MANILA, Philippines — Tycoon Lucio Tan’s Philippine National Bank will redeem ahead of maturity P5.5 billion in debt notes that qualified as Tier 2 capital using fresh funds raised from a newer and cheaper Tier 2 issuance.
In a disclosure to the Philippine Stock Exchange on Friday, PNB said it would redeem all of these Tier 2 or unsecured subordinated notes issued in 2006 upon the call option date of August 11 this year.
A Tier 2 note is a debt instrument that is eligible to be considered as supplementary capital in compliance with globally accepted capital adequacy requirements.
The call option gave PNB the right to redeem the old 10-year Tier 2 notes during the fifth year of issuance or otherwise pay a higher interest for the remainder of the term.
Coupon rate on these old notes was at 10 percent per annum as the local interest rate regime was much tighter when these were issued five years ago.
The redemption by August will be subject to approval by the policy-making Monetary Board of the Bangko Sentral ng Pilipinas.
PNB’s retirement of the Tier 2 notes will be funded by the P6.5 billion in fresh funds recently raised by the bank from the issuance of new Tier 2 notes.
The coupon rate for the new notes was fixed at 6.75 percent per annum until the maturity of the notes in 2021.

SOURCE: business inquirer.net

http://business.inquirer.net/5678/pnb-to...debt-notes
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#6
arthas.one Wrote:Dapat talaga ikaw yata umungkat neto, breakout sya today sa isang major resistance line for that you get 1 point from meBig GrinBig GrinBig Grin

haha! thanks for the compliment. Sana mag "dilang anhel ka". Another one of my lola's sayings.
The World is a Vampire . . .
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#7
broke the short term downtrend line last friday...

hopefully this is will become Pera Ng Bayan again...Big Grin
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#8
chug chug chug chug! All aboard!
The World is a Vampire . . .
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#9
Napatingin tuloy ako dito kasi fave ni A1. Fill the gap ba A1? I mean sa baba?

Sorry, na fill na pala. Dami kasi tinitignan ko nalito tuloy ako. Pwede pasok tutal laging NFS eh?
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#10
(09-08-2011, 07:29 PM)Ruach Wrote: Napatingin tuloy ako dito kasi fave ni A1. Fill the gap ba A1? I mean sa baba?

Sorry, na fill na pala. Dami kasi tinitignan ko nalito tuloy ako. Pwede pasok tutal laging NFS eh?

Basta Mam na pansin namin ni A1 kahit makapal ang ask sa kanan basta binabuy up aakyat yan
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