PHILIPPINE SAVINGS Bank (PSBank) has received regulatory approval to raise up to P15 billion in long-term negotiable certificates of deposit (LTNCD) to expand its consumer banking segment.
In a regulatory filing on Tuesday, the listed savings banking arm of Metropolitan Bank & Trust Co. said it recently got approval from the Bangko Sentral ng Pilipinas (BSP) for its LTNCD program amounting to P15 billion.
In May, the bank’s board of directors approved of the issuance, which will be done in two or more tranches and will be conducted over a year.
The program will carry a tenor of five-and-a-half years.
LTNCDs are similar to regular time deposits which offer higher interest rates. However, these cannot be pre-terminated. Being “negotiable” means these can be sold at the secondary market prior to maturity date.
The final terms of the LTNCD program including the offer period and interest rates are subject to market conditions, the bank said.
In a previous chance interview, PSBank President Jose Vicente L. Alde said the bank will offer LTNCDs in preparation for its customer business expansion brought about by its “robust” growth.
Mr. Alde said the bank will expand its retail arm by growing its traditional and digital channels.
This month, China Banking Corp. and Robinsons Bank Corp. have conducted LTNCD offerings, raising P10.25 billion and P1.78 billion, respectively, to support loan growth and stabilize cost of funding.
In the first quarter, PSBank saw its net profit at P641.1 million, up 25% from the P511.1 million in the same period last year supporter by the bank’s retail loan business. — Karl Angelo N. Vidal