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Investment Sector: Emerging Markets Submitted by Lovephileo 
, WEB CONSULTANT / PASTOR
at LIGHT OF THE WORLD CHRISTIAN CENTER
8 months ago Tags: banks merger PNB ATM shares Allied Bank Add Tag |
What happens when two banks merge together? A simple answer points to the principle of addition and multiplication or rather " a double positive impact " resulted.
PNB and Allied Banking Corporation, both owned and controlled by tycoon Lucio Tan, approved a P61.8 billion merger done deal that resulted the country's fourth biggest bank with a total asset of P388 billion ($9.24 billion), among 38 commercial banks operating in the country.
Under the merger structure, PNB will issue 457 million new shares at P55 each in exchange for 100% of Allied Bank's common and preferred shares.
What is up to expect then? Practically, a positive impact on overall financial performance, enlarging distribution platform, strong capital position, enhanced competitiveness, client outreach - in portfolio, products and services, increase savings income, cost-efficiency improvements, bolster banks overseas remittance business and a combined network of 626 branches and 614 ATM worldwide makes them the third biggest network in the country.
And what would be the effect to the depositors where there is an existing allied Bank and PNB in the same location? Two heads are better than one. For sure, one of these banks would be closed and the affected depositors be transferred to the surviving bank.
Allied Bank PNB
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WEB CONSULTANT / PASTOR at LIGHT OF THE WORLD CHRISTIAN CENTER