Current News and Updates

June 9, 2009
SMC acts to boost Bank of Commerce

Food and Beverage giant San Miguel Corp. has mapped out a three-pronged strategy for its banking unit, Bank of Commerce, aimed at capturing the next wave of growth opportunities, a top company official said.

In a disclosure to the Philippines Stock Exchange yesterday, San Miguel president and COO Ramon S. Ang identified three strategic priorities for BoC, namely aligning the bank's operations to reflect a new commercial strategy of servicing San Miguel clients and business partners, growing the bank's existing customer base, and strengthening the bank's capital position.

In May, San Miguel, through its property arm San Miguel Properties Inc. (SMPI) and its retirement fund, gained a controlling 51-percent stake in BoC with the infusion of an additional P2-billion equity.

Since acquiring a stake in BoC, San Miguel has worked with the bank's management to provide various services such as cash management and payroll servicing. BoC currently finances the working capital requirements of the conglomerate's dealers and suppliers.

Ang understood the need to improve the bank's facilities and systems to enlarge its base of depositors. "There are a lot more banking services that the Bank of Commerce can provide San Miguel, but we need to invest and upgrade the bank's IT systems, management capability and branch locations to make the bank more responsive and compatible to our business needs," he said.

"As one of the nation's leading medium-sized banks, we will continue to provide our customers the strength, convenience and financial stability they've come to expect from BoC," Ang said, adding that the "San Miguel name ensures financial strength and the ability to grow, enhancing BoC's ability to weather volatile markets while it vigorously competes in the banking industry."

Ang added he sees opportunities to work with our businesses like oil refiner Petron Corp. where San Miguel also has a substancial stake. "We see potential projects we can pursue with Petron. There's a fit between retail banking and Petron's retail network of over 1,500 service stations," he said.

BoC also serves as SMPI's retail arm for financing for its various residential condominium projects. The bank could tap SMPI's customer base by offering investment and deposit products, home improvement and appliance financing.

(lifted from the Philippine Star Business Section June 9, 2009)

June 9, 2009
SMC chief spells out strategic priorities for Bank of Commerce

San Miguel Corp. (SMC) president Ramon Ang has laid down three strategies priorities for Bank of Commerce (BOC), in which the diversified conglomerate owns a controlling 51-percent interest.

At the top of his list, said Ang, is the alignment of bank operations to reflect a new commercial strategy of servicing SMC clients and business partners; growing the bank's current base of customers; and strengtheing its capital position.

For instance, he sees the bank working cooperatively with other businesses.

"We see potential projects we can pursue with Petron. There's a fit between retail banking and Petron's retail network of over 1,500 service stations," Ang said.

SMC is now working on a potential investment in the oil refiner.

SMC, through property unit San Miguel Properties Inc. and the retirement fund, gained a controlling 51-percent stake in BoC following an additional P2 billion in equity infusion completed in May.

Since acquiring a stake in BoC in 2008, the diversified conglomerate has worked with the bank's management to provide SMC banking services such as cash management and payroll servicing, BoC currently finances the working capital requirements of dealers and suppliers of SMC.

"There are a lot more banking services that BoC can provide SMC, but we need to invest and upgrade the bank's IT systems, management capability and branch locations to make the bank more responsive and compatible to our business needs." said Ang.

He added. "As one of the nation's leading medium-sized banks, we will continue to provide our customers the strength, convenience and financial stability they've come to expect from BoC."

(lifted from Business Mirror, Companies section June 9, 2009)

June 8, 2009
Cainta Branch Inaugurated

Last Friday, June 5, the Bank's branch in Cainta, Rizal was formally inaugurated. Sponsoring the event were Mr. Raul De Mesa, Bancommerce President & CEO, and his wife, Mrs. Lulu De Mesa; Mrs. Veronica Ilagan, wife of Cainta Mayor Ramon Ilagan; Mr. Jun Ynares, Governor of Rizal; Congressman Jack Duavit; Mr. Peter and Mr. Roland Petisme of MAROZA Marketing, Inc.; Mr. Miguel Felix of Bistro Group of Companies; Ms. Belle Chua of Yamen Trading; Ms. Juliana Vega of Monte Cristo Hardware; Ms. Trading; Ms. Juliana Vega of Monte Cristo Hardware; Ms. Mimi Chua of Great Land; and Ms. Laida Sac of Suprastel.

Manning the branch are BM Ma. Belen G. Miniano, ABMM Ma. Lourdes Fatima L. Holloway, and ABMS Alfonso S. Soriano.

May 22, 2009
Valenzuela Branch Inaugurated

Last Friday, May 22, Bank of Commerce inaugurated its first branch in Valezuela.

Special guest and sponsors included General Sammy Pagbilao, Director of the Northern Polic District; Mrs. Purista Canque, owner of Canrey Industry; Ms. Purification Reyes, President of the Valenzuela City Government; Mr. Lucio Co, owner, PureGold Shopping Complex (shown in photo with Mrs. Lulu De Mesa); Mr. Manuel Moreno, Manager, San Miguel Brewery, and Mrs. Lulu De Mesa.

The branch, located in PureGold Shopping Complex along Dalandanan Highway in Valenzuela, is manned by BM Susan A. Regalado, ABMM S. Banares, and ABMS Edwin L. Espena

March 19, 2009
Bank of Commerce raises Net Interest Income to P3.1b

Bank of Commerce reported a 14.5 percent increase in net interest income in 2008 to P3.1 billion from P2.7 billion in 2007.

In a report to the shareholders Tuesday, bank president Raul de Mesa said the increase outpaced the 7.1 percent rise in operating expenses.

Loans and receivables reached P55.4 billion, up 55.3 percent from the level in 2007. Total deposits increased by 27.2 percent to P77.9 billion. De Mesa attributed the growth in volumes to the bank’s effort to strengthen business relationships with identified markets, both for asset expansion and deposit generation.

Total qualifying capital stood at P8.3 billion, with a capital adequacy ratio of 10.7 percent.

“These financial results underscored the bank’s efforts to manage interest margins and contain administrative expenses,” De Mesa said.

The bank was not spared by the worst global recession in decades as net income declined by 48.8 percent to P263 million, primarily due to markdowns on the investments in structured products. “The institution undertook initiatives to strengthen the balance sheet through additional provisions,” De Mesa said.

Elected to the board during the meeting were chairman Antonio Cojuangco, president and chief executive Raul de Mesa, Ramon Cojuangco Jr., Miguel Cojuangco, Jeronimo Kilayko, Ferdinand Constantino, Amor Iliscupidez, Jose Camus, Edgardo Bautista, Rafael Evangelista, William Russell Sobrepeña and independent directors Jose Pardo, Raul Rabe, Francis Chua amd Roman Felipe Reyes.

(lifted from Manila Standard Today, Business Section April 23, 2009)

March 19, 2009
bCommerce now ONLINE

Bank of Commerce takes banking to a whole new level via bCommerce Internet Banking. bCommerce offers secured, real-time and convenient banking. This user-friendly facility allows clients to check their balances, pay their bills, transfer funds and re-order their checkbooks anytime of the day. It is now open for both corporate and individual clients. Enrollment to this facility begins by logging on to www.bankcom.com.ph and clicking on the bCommerce link.

Bank of Commerce Capital Increases

Bank of Commerce received another boost from the additional equity infusion of San Miguel Properties, Inc. (SMPI) and San Miguel Corporation Retirement Plan (SMCRP). Recently, the two entities signed a subscription agreement where they will be investing in the bank with another P2 billion, to begiven in several tranches. This will give SMPI and SMCRP combined holdings of 51.1%. Last 15 April 2008, the Monetary Board approved the first subscription agreement that initially gave SMPI and SMCRP a combined share of 34.3% for the first P2 billion. This new subscription agreement thus brings their total investment to P4 billion, bringing Bank of Commerce's
total capital accounts (including Tier-2 accounts) to approximately P10.42 billion.

Performance-wise, Bank of Commerce registered a record after tax income, before provisions, of P524.4 million from January to August 2008, a 48.6% increase over the previous record set in 2007. While margins remained under pressure due to intense competition, the bank's net interest spread widened to 3.8% during the month of August. The bank's capabilities in business generation were reinforced by cost control discipline.

"Increases in interest income, the steady improvement in asset quality, and a capital build-up program were the primary drivers of the bank's profit performance," said Raul B. de Mesa, president and chief executive officer. "In spite of the challenging market environment, our funds-based operations served us very well as sales momentum continued across various economic cycles."

Total deposits rose to P72.5 billion thereby surpassing last year's level by 33.7%. On the other hand, additional bookings expanded the gross loan portfolio to P40.7 billion, up sharply by 51.4%.

Asset quality also continued to improve. From 8.7% twelve months ago, the bank's non-performing loans ratio was reduced to 4.2% as the level of NPLs was cut by 40%.

The bank will be opening five (5) new branches within the year, more than ten (10) non-traditional distribution channels, and will be investing in upgrades in its technology, and in product development and marketing activities.

Bank of Commerce Ratings Upgraded

Last August, PhilRatings upgraded both the bank's issuer and issue ratings for its P1.5 billion unsecured subordinated debt from PRS A to PRS A plus. "The ratings upgrade takes into account the anticipated improvement in Bancommerce's capital position, following equity infusion of new shareholders led by the San Miguel group," PhilRatings said in a statement. The upgrade also considered Bancommerce's ability to sustain deposit-gathering activities and its satisfactory business franchise.

"The acquisition of a universal bank license will be an important factor in the expansion of the bank's franchise going forward, giving Bancommerce the option to undertake activities that are not permitted under its present commercial bank status," PhilRatings added.

"We may not have seen the last of the challenges for this cycle, but accomplishments achieved in the first eight months of 2008 provide strong foundations on which to build optimism. The ratings upgrade and all the programs laid out make us very excited about our opportunities to continue to gain market share prudently in our core businesses," says bank president and chief executive officer Raul B. de Mesa.

Positive Outlook
University of Asia & the Pacific (UA&P)’s, Dr. Emilio Antonio Jr., painted a positive outlook for the rest of the year during the Bank of Commerce (BOC)’s series of economic briefing for its clients at the Makati Shangri-la Hotel last May 15-16. Antonio provided the national macroeconomic perspectives in the well-attended affair which is an annual service of the BOC for its clients.
(lifted from The Philippine Star, Business Section, May 28, 2008)

SMC takes 51% stake in Bank of Commerce
The San Miguel Group (SMC) is taking a majority stake in a medium-sized commercial bank as part of its diversification strategy.

In a disclosure to the Philippine Stock Exchange, SMC said its property subsidiary San Miguel Properties and its retirement fund planned to increase their stake in Bank of Commerce to 51 percent from 34 percent. No price was put on the purchase.

Two units bought the initial stake in the bank about seven months ago for around P2 Billion. Bank of Commerce had a net income of 528.1 Million, with total assets of P76.7 Billion.
(lifted from The Philippine Star, Wednesday May 21, 2008)

Bank of Commerce Hits New Performance Records in 2007 (February 12, 2008)
Bank of Commerce had a great finish for a great year, performing beyond its financial targets in terms of both profitablity and growth, with Net Income After Tax before Provision for Losses of P983 million, and a Net Income After Tax and after provisions at P504 million.

The Bank reckons that in 2007, net interest income exceeded total operating expenses, where Net Interest Income escalated by P671 million or 34.9%, totaling P2.6 billion. “We had set out to ensure that in 2007, one of our main indicators of success – the despite the odds posed by falling rates and fierce competiton – would be how well our net interest income would cover for operating expenses. This we have attained, and more. Indeed, our success was a combination of efforts in actively growing loans and deposit volumes, astute funds management, and efficient cost management. " More..

Bank of Commerce Received Citation (February 12, 2008)
The bank received Certificate of Appreciation from Citi (Citibank) for being an active participant of the Philippine Domestic Dollar Transfer System. The certificate of appreciation was received by Mr. Alex Brillon of the Foreign Exchange Department. Given November 2007 during the Citi Annual Financial Institutions Conference.

Bank of Commerce Officers Promoted (February 28, 2008)
The Board of Directors has approved several promotions effective 01 March 2008 More..

Bank of Commerce Strengthens Its Compliance and Risk Management Capability February 28, 2008
Pursuant to BSP Circular No.145, requiring the appointment of a full-tine Compliance Officer, the Board of Directors has approved the reassignment of the following Senior Officers effective 01 March 2008. More..

Bank of Commerce Going Online (March 3, 2008)
Recently, the Bank and Solutions Exchange Inc. signed a contract that will enable Bank of Commerce to go into internet banking. Dubbed as bCommerce, this online banking initiative will allow both BCBankers and clients to do their transactions such as fund transfer, bills payment, check management, (current accounts), business banking and other services and tools in the comfort of their home or office or without the hassle of falling in line. More..

Bank of Commerce participates in Syndication (March 4, 2008)
Bank of Commerce participated in Stradcom International Holdings, Inc. (SIHI)'s P2.0 billion Equity and Loan syndication supported by other companies like First Metro Investment Corp., Republic Glass Holdings Corp., Pentacapital Management Corp. and Philippine Veterans Bank. More..