Bank of Commerce, the banking arm of bilyonaryo Ramon S. Ang-led San Miguel Corp., is reallocating the remaining P940 million proceeds of its P3.37 billion initial public offering to boost its lending portfolio as economic activities accelerate.
Having utilized more than 70 percent of its P3.37 billion proceeds from its IPO for loans and securities purchases, BankCom’s management and its board of directors revisited the planned use of the remaining proceeds for information technology capital expenditure requirements.
This was after negotiations with BankCom’s IT vendors indicated that the payment scheme for IT investments would stretch over multiple years.
BankCom said that with the significant increase in its profit over the past year, IT investments can already be fully funded by revenues from its regular banking operations.
The bank reported a 53 percent jump in profit to P1.2 billion last year, driven by the steady growth of its core businesses. Net interest income went up six percent while non-interest earnings reached P826 million on the back of a 19 percent jump in service charges and fees and commissions and gains on sale of acquired assets.
For the first half this year, BankCom more than doubled its earnings to P886.91 million, driven by the robust growth of its loan portfolio which grew 35.6 percent.