December 31, 2021The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved the upgrade of the banking license of Bank of Commerce (BankCom), an affiliate of San Miguel Corporation (SMC), from commercial bank to universal bank (UB) subject to certain regulatory requirements. With this, BankCom, one of the country’s most progressive banks, will now be able to provide a much broader range of products and services essential to conglomerates and businesses, particularly those expanding in 2022 as the economy recovers strongly from the pandemic. “Our expanded banking services will allow us to fortify our presence in the domestic market and deepen relationships with clients and unlock cross sell opportunities which we intend to convert into additional revenue streams,”BankCom President and CEO Michelangelo R. Aguilar, said. BankCom is also looking to provide clients access to attractive, whole-life and investment-based insurance products, through a strong bancassurance offering. “The banking sector will be crucial to our country’s economic recovery from the pandemic. BankCom has a strong capital position from the Php 5.5 billion infusion of SMC Equivest Corporation and the potential proceeds from its IPO. The Bank’s strong balance sheet and the opportunities that we see both inside and outside the SMC ecosystem will pave the way for a new phase of growth for the bank,” SMC president and CEO and SMC Equivest chairman and president Ramon S. Ang said. BankCom filed a registration statement with the Securities and Exchange Commission (SEC) in November, and likewise an application with the Philippine Stock Exchange (PSE) this month, in connection with the proposed initial public offering of its common shares. The common shares have an indicative offer price of up to Php12.50 per common share and are intended to be offered in Q1 2022. BDO Capital & Investment Corporation, China Bank Capital Corporation, Philippine Commercial Capital, Inc., and PNB Capital and Investment Corporation have been engaged as Joint Issue Managers, Joint Lead Underwriters, and Joint Bookrunners for the IPO. As of September 2021, the total assets of BankCom stood at PHP195 billion, representing a 14% growth from PHP171 billion at end-2020. Further, its deposit base spread across 140 branches stood at PHP167 billion as of September 2021, representing a 14% growth from PHP149 billion at end-2020. Likewise, its net income grew by 26% in the first nine months of 2021 compared to the same period last year. A REGISTRATION STATEMENT RELATING TO THE COMMON SHARES OF BANKCOM HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT YET BEEN DECLARED EFFECTIVE. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE REGISTRATION STATEMENT HAS BECOME EFFECTIVE THEREBY, AND ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME PRIOR TO THE NOTICE OF ITS ACCEPTANCE. AN INDICATION OF INTEREST IN RESPONSE HERETO INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR BE CONSIDERED A SOLICITATION OF AN OFFER TO BUY.