Declaring the cash dividends: PVB Chairman Emmanuel V. de Ocampo declaring cash dividends for preferred and common shares at the Annual Stockholders’ Meeting while other directors look on.
A successful 2010 for Philippine Veterans Bank has allowed it to declare cash dividends of eight percent (8%) for preferred and two percent (2%) for common shareholders. The announcement was made by PVB Chairman Col. Emmanuel V. de Ocampo during the bank’s annual stockholders’ meeting held at the SMX Convention Center in Pasay City attended by some 5,000 World War II veterans, their widows and heirs.
2010 was a banner year for Veterans Bank in terms of profit. In his report to stockholders, PVB President and CEO Ricardo A. Balbido Jr. said that the bank earned a net income of P509 million for the year, 20% higher than the net income it garnered in 2009. According to Mr. Balbido, the main drivers of this feat included higher interest income, sizable gains from the trading of securities and foreign exchange, and strategic management of the bank’s investment portfolio.
He added that the bank’s resources also grew by 13% totaling P58 billion as compared to the P52 billion recorded in 2009. He attributed the growth of PVB’s assets to the increase in deposits of the bank which reached P46.36 billion at the end of 2010.
Mr. Balbido also cited the growth of the bank’s capital base from P5 billion in 2009 to P5.4 billion last year for a 9% increase. Veterans Bank’s capital adequacy ratio (CAR), a measure to determine a bank’s capability to shoulder risks, remained high at 17.16% which is way above the minimum 10% CAR set by the Bangko Sentral ng Pilipinas.
The report by the bank’s president also highlighted the growth of PVB’s corporate banking business and Mr. Balbido cited the significant increases in the portfolios of the bank’s trade finance, commercial banking, and government credit and specialized lending departments. He also reported that the bank’s loans to local government units rose 21.74% to reach P4.77 billion and this was a key factor in the growth of PVB’s assets.
He also reported that the bank had opened 10 branches last year and had launched several new innovative banking products that fulfilled the different needs of its diverse clientele. Mr. Balbido also announced the bank’s successful migration to BancNet which further added convenience to its more than 200,000 cardholders.
He however cautioned shareholders that this year will be a challenging one with stiff competition in the industry and prevailing low-interest regime. He added that due to these factors, the bank is tempering its net income forecast to P500 million by year-end.
New Venue: This year’s ASM held at the SMX Convention Center was well-attended with over 5,000 shareholders finding their way to the new venue.
Shareholders also elected the 11-member PVB Board of Directors for a one-year term. Re-elected for another year as board members were Col. Emmanuel V. de Ocampo, Ricardo A. Balbido Jr., Engr. Antonio A. Balgos, Commo. Vicente R. Buenaventura, Atty. Democrito T. Mendoza, Atty. Eduardo P. Pilapil, Gen. Umberto A. Rodriguez, Atty. Romeo G. Roxas, Atty. Ramon P. Miranda, and Col. Francisco T. San Miguel. Completing the board is Ms. Percianita G. Racho who is currently the National President of the Veterans Federation of the Philippines - Sons & Daughters Association, Inc., (VFP-SDAI).
Philippine Veterans Bank is owned by some 300,000 Filipino World War II veterans and their designated heirs. As part of its mandate, it is committed to set aside 20% of its annual net income to the Board of Trustees of the Veterans of World War II (BTVWWII), which in turn manages programs for the benefit of the veterans, their widows, orphans and heirs.
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For any questions or clarifications, please call:
Mike Villa-Real
Vice-President
Corporate Communications and Marketing Services Dept.
Tel: 902-1670
Email: mcvillareal@veteransbank.com.ph
