SAN Miguel Corp. (SMC) affiliate Bank of Commerce (BankCom) has now been added to the list of the country’s universal banks.
In a disclosure to the local bourse last Wednesday, BankCom said they were conferred the authority to operate as a universal bank through a formal certificate from the Bangko Sentral ng Pilipinas (BSP).
Based on BSP policies, among the powers of a universal bank is to act as an investment house as well as invest in non-allied enterprises.
“As a universal bank, BankCom will strengthen its presence in the domestic market and deepen its relationship with clients through a broader range of financial solutions by being able to generate and warehouse interest-bearing assets such as marketable securities, and offer more investment banking products and services,” BankCom President and CEO Michelangelo R. Aguilar was quoted in a statement as saying.
The lender quoted the BSP as saying that among the powers of universal banks is to own 100 percent of equity in a thrift bank, a rural bank, a financial allied enterprise or a non-financial allied enterprise, as well as fully own the voting stock of only one other universal or commercial bank.
The BSP issued the certificate in a ceremony led by Central Bank Governor Felipe M. Medalla and Monetary Board member Antonio S. Abacan Jr. and BSP Deputy Governor Chuchi G. Fonacier as well as BankCom executives led by its Chairman Ambassador Francis C. Chua.
“SMC has continued to invest in major initiatives that will serve the current and future needs of various sectors and industries that continue to grow, despite the challenges of the pandemic. This upgrade of the Bank of Commerce means there will now be another major player in the banking sector that can help push SMEs and companies pursue their growth targets and long-term goals,” SMC President and CEO Ramon S. Ang was quoted in a statement as saying.
BankCom said following its change of status to a universal bank, it is setting its sights on further boosting its lending portfolio to support local businesses—particularly the small to medium enterprises—to help propel activities driving the country’s economic growth.
This is in line with the recent approval of the lender’s Board of Directors on the reallocation of the remaining P940 Million from its initial public offering proceeds for lending activities beginning in the fourth quarter of 2022 as it previously disclosed investments will now be funded by its increased revenue streams.
BankCom posted a net income of P886.91 million for the six months ended 30 June 2022, an increase of 290 percent compared to the P304.37 million from the same period last year.
Second quarter net income of P526.32 million is 45.96 percent higher than the P360.59 million in the previous quarter this year.
The increase was mainly spearheaded by growth in the bank’s core business (net interest income and service charges, fees and commissions).