PHILIPPINE Savings Bank will hike its capital stock to P6 billion. — BW FILE PHOTO

PHILIPPINE Savings Bank (PSBank) is looking to raise its authorized capital stock to P6 billion in a bid to strengthen its capital structure and provide the lender flexibility.

In a disclosure to the local bourse yesterday, the thrift banking arm of Metropolitan Bank & Trust Co. (Metrobank) said the Bangko Sentral ng Pilipinas (BSP) has okayed the amendment of its Articles of Incorporation (AoI) last Aug. 8 to increase its capital stock to P6 billion from the previous P4.25 billion.

The capital stock hike will consist of 600 million common shares with a par value of P10 per share.

“The increase in authorized capital stock will provide the bank more flexibility for any potential business opportunities in the future that would need sufficient authorized and unissued shares that can be issued promptly,” it said.

Its stock dividend rate currently stand at 11.42%.

The bank said it will expects to file with the Securities and Exchange Commission (SEC) the amendments to its AoI on Sept. 11 for the regulator’s approval.

The capital hike was approved by PSBank’s board of directors on March 12, while its stockholders okayed the proposal during its annual stockholders’ meeting on April 15.

Meanwhile, PSBank said on Thursday its board of directors also approved the declaration of stock dividends to all of its stockholders worth P437.5 million equivalent to 43.75 million common shares.

The payment date will be set after PSBank gets SEC’s nod on its capital stock hike, the lender said.

PSBank’s net income went up 2.5% year on year in the first six months to P1.4 billion on the back of its growing consumer lending portfolio and efforts to improve operational efficiencies. Its loans and receivables grew by 6.8% to P160.8 billion in the first half.

PSBank closed at P57.95 per share on Thursday, gaining five centavos or 0.09% from the previous day’s finish. — Beatrice M. Laforga