PHILIPPINE Business Bank (PBB) has hiked its capital stock as it aims to expand its operations, it said on Friday.
In a disclosure to the local bourse, PBB said its board of directors has approved to raise the bank’s authorized capital to P15 billion from P10 billion.
Members of the board approved the bigger capital stock by adding 1.37 billion common shares priced at P10 apiece, from 870 million common shares priced at the same amount.
Meanwhile, preferred shares will remain steady at 130 million.
“The increase in authorized capital stock is in preparation for the continuing expansion of the bank’s core deposit-and-lending business. An expanded capital base will allow the bank to grow its risk assets and provide financing to its clients,” PBB said.
The lender said the capital hike has been approved by the Securities and Exchange Commission.
PBB’s board of directors likewise approved an amendment to the bank’s Articles of Incorporation to reflect the increase.
The bank also amended its preferred shares to convertible as it would lower PBB’s financing costs.
“The conversion of the preferred shares to common is in line with the Bank’s capital raising exercise. A strong capital base will help the Bank sustain its business, prepare for future growth, maximize returns, and mitigate strategic risks,” the lender said.
In a filing last week, PBB said its principal shareholders have completed the subscription payment to the private placement of P1.25 billion worth of shares to cover PBB’s capital stock increase. This was equal to 125 million common shares at P10 apiece.
Shareholders first paid P312.5 million in September last year. The remaining balance of P937.5 million was paid this month. These are booked under deposit for future stock subscription.
PBB’s net income climbed to P306.280 million in the third quarter of 2022, up by 9.3% from the P280.294 million posted in the same quarter a year prior, on the back of a higher core income and an expansion in its loan portfolio.
This brought the bank’s net income for the first nine months of 2022 to P926.6 million, 15.2% higher year on year.
PBB’s shares closed unchanged at P11 apiece on Friday. — K.B. Ta-asan