PHILIPPINE National Bank is absorbing its thrift unit. — BW FILE PHOTO

PHILIPPINE National Bank’s (PNB) absorption of its thrift bank subsidiary PNB Savings Bank (PNBSB) has been approved by regulatory authorities and is set to take effect by March.

“The integration shall be implemented through PNB’s purchase and assumption of assets and liabilities of PNBSB as of Feb. 29. It shall take effect on March 1,” PNB said in a newspaper notice.

“All existing PNB deposits will continue to be governed by the same terms and conditions,” PNB said.

In a previous interview, PNB Savings Bank Acting President Mary Ann A. Santos said the integration will give PNB Savings Bank clients access to more products.

Ms. Santos said customers of the thrift bank will have to express their conforme for the transfer of their account to PNB once the full integration is finalized.

In August last year, the Bangko Sentral ng Pilipinas approved the integration of PNBSB into its parent PNB.

“This gives increased flexibility for the clients as the current bevy of services under the savings bank are limited to traditional deposits and consumer loans,” PNB said.

Once integration is completed, PNB said that clients of the savings bank will have access to the automated teller machine, mobile, and internet banking services of the parent lender.

PNBSB is the sixth-biggest thrift bank in the Philippines, with assets worth P61.8 billion as of end-2018.

Meanwhile, the parent lender PNB’s net earnings dropped to P3.9 billion in the January to June 2019 period from the P5.4 billion recorded a year ago, on the back of a one-time gain from the sale of foreclosed assets.

The listed Tan-led bank’s assets and its units grew 24% in the first half of 2019 to P1.09 billion.

PNB’s shares inched up 1.09% or by 35 centavos to P32.40 apiece on Monday. — L.W.T. Noble