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PNB From PNB Website
PNB From PNB Website
In 1917, PNB marked its entry in the field of international banking when it
opened its New York Branch. The following year, it established five more
domestic branches and another overseas branch in Shanghai, China.
PNB briefly ceased operations in January 1942 but reopened the next
month under the supervision of Japanese authorities. After the Second
World War, PNB reopened immediately and acquired the assets and
assumed the liabilities of the banking division of the National Treasury.
With the establishment of the Central Bank in 1949, PNB's role as issuer of
currency notes, custodianship of bank reserves, sole depository of
government funds and clearing house of the banking system ceased.
"PNB launched the first on-line Electronic
Data Processing System in the entire Far East"
In 1955, it was authorized to operate as an investment bank with powers to own shares and to issue
debentures.
In 1963, it established the National Investment and Development Corporation to engage primarily in
long-term and equity financing of business ventures.
PNB transferred to its new Head Office along Escolta in 1966 and launched the first on-line Electronic
Data Processing System in the entire Far East.
Between 1967 and 1979, PNB continued to expand its operations by opening offices in London,
Singapore, Djakarta, Honolulu and Amsterdam. In the domestic field, it opened 14 provincial branches.
It was also during this period that the Bank started the Dollar Remittance Program.
In 1980, PNB became the first universal bank in the country. However, it encountered operational
difficulties in the mid-80s as a result of the economic downturn triggered by the assassination of
Senator Benigno S. Aquino, Jr and had to be assisted by the government in 1986.
Privatization of PNB
The privatization of the Bank started when 30 per cent of its outstanding stocks was offered to the
public and its stocks were listed in the stock exchange in 1989.
In 1992, PNB became the first Philippine bank to reach the P100 billion mark in assets.
The group pumped in nearly P20 billion fresh capital in less than one year. This was done to emphasize
the commitment of the new stockholders' group to the improvement of the Bank's financial condition,
which has been incurring losses in operations, due to poor asset quality.
In late-2000, the bank suffered a liquidity crisis and the National Government stepped in to support
the bank, implementing a capital restructuring of the Bank, and injecting PHP25bn of liquidity
assistance.
In May 2002, the Government and the Lucio Tan Group sealed the Memorandum of Agreement (MOA)
that embodies the provisions that will help turn the Bank around. It includes, among others, the
settlement of government's liquidity assistance by way of increasing government's stake in the Bank
from 16.58% to 44.98% that is now equal to the Lucio Tan Group's 44.98% from 68%. At the same
time, the bank started operating under a 5-year Rehabilitation program.
In August 2005, the government, as part of its privatization program, sold down a further 32.45%
stake in the Bank via an auction. The Lucio Tan Group, as the other majority holder exercised its right
of first refusal, reducing the government share to 12.5% and raising that of the Lucio Tan Group’s to
77.43%.
In June 2007, PNB settled its P6.1 billion loan to Philippine Deposit Insurance Corporation (PDIC), more
than four years ahead of the loan’s due date. The loan repayment was a clear indication of the Bank’s
renewed financial health.
In August 2007, the bank completed its Tier 1 follow-on equity offering where it raised about P5.0
billion in Tier 1 capital. Together with the sale of 89 million primary shares, 71.8 million secondary
shares owned by the national government thru PDIC and DOF were sold to the public and thus bringing
about a complete exit of the government from PNB.
Since the inception of the rehabilitation program, PNB has exceeded the targets of the program. While
the program called for profits starting 2005, the bank became profitable as early as 2003. Within four
years, PNB increased its net income sixteen times from P52 million in 2003 to P820 million in 2006.
With its successful exit from the government’s Rehab program and the strong income performance,
PNB has demonstrated its ability to sustain its heightened competitiveness based on the three tenets of
reducing non performing assets, strengthening core businesses and increasing profitability.
The Bank remains as one of the largest banks in the country with a wide array of competitive banking
products to answer for the diverse needs of its huge clientele including more than 2 million depositors.
PNB maintains its leadership in the overseas remittance business with remittance centers in the United
States, Canada, England, Spain, the Netherlands, France, Germany, Austria, Italy, Hong Kong, Japan,
Singapore, Malaysia and the Middle East countries.
Through its subsidiaries, the Bank also engages in a number of diversified financial and related
businesses such as remittance servicing, investment banking, non-life insurance, stock brokerage,
leasing and financing and foreign exchange trading. The Bank, through its associate, is also engaged
in other services such as life insurance.
Philippine National Bank: History. (2011). Retrieved March 1, 2011, from Philippine National Bank
Corporate Website: http://www.pnb.com.ph/content/view/192/332/