Philippine National Bank (PNB) is set to shut down its offshore branch in Bahrain and dissolve two domestic subsidiaries as part of a continuing effort to rationalize operations and focus on core businesses.
In a disclosure, the Lucio Tan-led lender said its board approved the closure of its Bahrain branch and the dissolution of its consumer finance and enterprise services sectors.
PNB has over 70 overseas branches, representative offices and remittance centers across Asia, Europe, the Middle East and North America. It maintains correspondent relationships with more than 300 banks and financial institutions and over 90 overseas agents and tie-up partners worldwide.
PNB assured clients that the closure of the Bahrain office will follow regulatory procedures of both Philippine and Bahraini authorities to ensure smooth settlement of accounts.
‘On the closure of PNB Bahrain Representative Office, board approval is required before Notice of Closure is sent to the Bangko Sentral ng Pilipinas and before Letter of Intent is submitted to the Central Bank of Bahrain and Bahrain Ministry of Commerce,’ the bank said.
The filing also reported a slight reduction in PNB’s capital stock after the buyback of 47,402 common shares. The company’s authorized capital stock remains at 1.75 billion shares with a par value of P40 each.
PNB president and CEO Edwin Bautista earlier said the bank could sustain its earnings momentum in the second half, citing strong fundamentals, aggressive lending plans and ongoing digital transformation.
PNB earlier reported a 22-percent jump in net income in the first half to P12.5 billion. In the second quarter alone, the bank posted a 29-percent year-on-year increase to P6.4 billion.