Robinsons Bank sets P10 billion fundraising plan this year

Lawrence Agcaoili (The Philippine Star) - January 24, 2020 - 12:00am

MANILA, Philippines — Gokongwei-led Robinsons Bank Corp. is raising as much as P10 billion from the domestic debt market to fund the bank’s growing lending portfolio and diversify its funding sources.

The bank’s board of directors approved on Wednesday the funding plan involving the issuance of corporate notes, bonds or long-term negotiable certificates of deposits (LTNCDs) in various tranches or multiple tenors.

Last year, the bank raised P10 billion via the issuance of fixed rate bonds.

It issued P5 billion worth of 5.125 percent peso-denominated bonds due 2021 on Aug. 13, 2019 followed by another P5 billion worth of 4.3 percent peso-denominated bonds due 2021 on Nov. 14, 2019.

The listed bank also raised P5.96 billion though the issuance of LTNCDs over the past three years. It raised P4.18 billion in June 2017 and another P1.78 billion in July 2018.

The debt papers issued by Robinsons Bank were listed on the Philippine Dealing and Exchange Corp. (PDEx).

The family of the late taipan John Gokongwei owns Robinsons Bank. JG Summit Capital Services Corp. controls 60 percent of the bank while Robinsons Retail Holdings Inc. owns the remaining 40 percent.

The earnings of Gokongwei-led bank jumped by 56 percent to P461.28 million from January to September last year compared to P294.96 million in the same period in 2018 amid higher trading and securities gains.

The bank’s total operating income went up by 20.5 percent to P3.57 billion compared to P2.97 billion, while expenses increased by 19.4 percent to P3.01 billion from P2.52 billion.

Robinsons Bank booked a 35.6 percent increase in interest income to P3.53 billion from P2.61 billion on account of significant improvement in loan-related activities and financial investments.

On the other hand, interest expense surged by nearly 59 percent to P2.32 billion from P1.46 billion due to the increase in volume of deposits and bills payable on a period-to-period basis.

The bank’s loan book reached P72.19 billion as of end September while its deposit base amounted to P81.41 billion.

Net service fees and commission income rose by 37 percent to P198.02 million from P44.81 million on account of higher revenues earned on fee-based activities.

Likewise, trading and securities gains reached P364.03 million from January to September this year or almost 31 times the P11.86 million recorded in the same period last year.

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