Current News and Updates

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..