Corporate News

Merger of bank, property firm approved by BSP

Posted on January 17, 2011

THE CENTRAL bank has approved the merger of Philippine Veterans Bank (PVB) and wholly owned subsidiary Monarch Properties, Inc. (MPI), with the bank as the surviving entity.

“The BSP (Bangko Sentral ng Pilipinas) gave its approval of the PVB and MPI merger last Nov. 11,” Veterans Bank Vice-President for Corporate Communications Miguel Angelo C. Villa-Real told BusinessWorld in an e-mail last week.

“Currently, Veterans Bank is waiting for the Certificate of the Merger to be issued by the Securities and Exchange Commission,” he added.

BSP Deputy Governor Nestor A. Espenilla, Jr. confirmed the central bank’s approval of the merger in a separate e-mail.

Mr. Villa-Real said Monarch Properties’ assets would be swallowed by Veterans Bank as a result.

Monarch Properties’ assets include the Makati building that serves as Veterans Bank’s main office.

The Veterans Bank board of directors approved the merger on Oct. 30, 2003. Stockholders of the bank subsequently gave their nod to the merger on May 30, 2005.

The merger was submitted by Veterans Bank for approval of the central bank in 2007.

Mr. Villa-Real also said: “[T]he bank plans to apply for five branch licenses with the BSP in the near future.”

Veterans Bank, a private commercial bank owned by some 300,000 Filipino World War II veterans and their heirs, is aiming to increase its assets by 15% this year.

As of end-December Veterans Bank’s unaudited assets totaled P58.4 billion, while Monarch Properties’ unaudited assets amounted to P143.4 million.

In the nine months that ended September last year, Veterans Bank’s unaudited net income amounted to P327.43 million, 11.75% higher from the previous year.

Its capital adequacy ratio -- the measure of a bank’s financial strength -- stood at 17.74%, well above the central bank’s 10% minimum requirement.

PVB has a total of 60 branches nationwide. -- Ann Rozainne R. Gregorio