Tycoon Lucio Tan-led Philippine National Bank (PNB) recently collected back P7.5 billion worth of excess capital from PNB Savings Bank which has been integrated into the parent bank.
PNB acquired the assets and assumed the liabilities of PNB Savings back in 2018. The latter’s corporate name had been changed to Allied Integrated Holdings Inc. (AIHI) and its articles of incorporation amended.
The integration was intended to deliver a more efficient banking experience, as well as serve a wider customer base. The customers of former thrift bank arm, on the other hand, will have access to PNB’s diverse portfolio of financial solutions upon full integration.
The consumer lending business operated through PNB Savings was also seen to benefit from PNB’s ability to efficiently raise low cost of funds.
The integration was approved by the Bangko Sentral ng Pilipinas in 2019 and became effective in March 2020. The thrift bank thereby surrendered its banking license to the local central bank.
The thrift bank was afterwards converted into a holding company, AIHI, as reflected in its amended articles of incorporation.
On Feb. 10, the Securities and Exchange Commission approved the amended articles of incorporation and by-laws as well as the reduction in the authorized capital stock of AIHI from P15 billion to P3 billion divided into 30 million common shares with par value of P100 each.
Out of the P10.5-billion subscribed and paid-up capital of PNB in AIHI, the latter retuned P7.5 billion to the parent bank. “Plan of merger is not applicable since PNB purchased substantially all the assets and assumed substantially all the liabilities of AIHI. The funds arising from the purchase will now be returned to PNB, as parent bank, as return of capital,” the disclosure said.