China Bank Capital Corp. (CBCC), the investment house of China Banking Corp., announced on Thursday its acquisition of stock brokerage house ATC Securities Inc. (ASI).
In a disclosure to the Philippine Stock Exchange, CBCC announced the purchase of 100 percent shares of ASI, which is subject to regulatory approvals.
As the company had announced earlier, ASI will eventually be renamed China Bank Securities Corp. and will serve as the stock brokerage arm of the China Bank Group. CBCC will build up the capitalization of China Bank Securities to P100 million, the minimum mandated by the Securities and Exchange Commission (SEC) for dealer brokers.
The investment house also updated the approval of SEC on June 5 of the incorporation of its special purpose corporation subsidiary, CBC Assets One (SPC) Inc.
Prior to the disclosure, CBCC announced in June that, aside from SPC, it plans to put up a wholly owned stock brokerage house subsidiary.
Its stock-brokerage house will be known as China Bank Securities Corp. The wholly owned subsidiary will allow CBCC to initiate an initial public offering (IPO) and list the IPO shares on the Philippine Stock Exchange (PSE).
“The addition of these two new subsidiaries to China Bank Capital’s portfolio will round out its offerings and help improve its capabilities on the capital origination side,” CBCC’s previous disclosure noted.
The company will initially put up the minimum regulatory requirement of P100 million for the brokerage and P5 million for the SPC.
It will then decide if it needs to further increase capitalization as needed, as they assess the ongoing operations of the entities. CBCC capitalization stands at P500 million.
China Bank is the country’s first privately owned local commercial bank with over 500 branches nationwide, including its thrift bank subsidiary China Bank Savings.
The bank posted a 15-percent year-on-year growth to P1.39-billion net income for the first quarter, and a 27-percent increase in noninterest revenues.
This resulted to a 9.23-percent return on equity and 1.05 return on assets.