The Securities and Exchange Commission approved the merger of China Bank Savings Inc., the thrift bank unit of China Banking Corp., and Planters Development Bank.
China Bank said in a disclosure to the stock exchange Monday the SEC approved the merger on Dec. 17, 2015.
“This is to inform the exchange that our executive committee noted this afternoon, the approval by the Securities and Exchange Commission on 17 December 2015 of the articles and plan of merger between China Bank Savings Inc. and Planters Development Bank,” China Bank said.
It said as a result of the merger, China Bank Savings and Plantersbank would become a single corporation, with the former as the surviving company.
China Bank in 2014 acquired Plantersbank, a development-oriented finance institution acclaimed as the country’s lead bank for small and medium enterprises.
China Bank said the integration process would create a new bank committed to supporting the growth of SMEs and strengthening China Bank’s presence in the SME and middle market.
Meanwhile, China Bank said its executive committee approved the appointment of Carlos Borromeo as senior vice president, chief financial officer and head of financial management segment affective Jan. 1, 2016.
Other appointees were Marissa Espino as vice president 1, chief compliance officer and head of compliance office and Maria Cristina Hernandez as vice president 1, head of treasury financial institution under financial capital markets and investment segment.
China Bank posted an 8-percent increase in consolidated net income to P3.64 billion in the first nine months, on the back of stronger lending and lower cost of funding.
The three-quarter performance translated into a return on equity of 8.35 percent and a return on assets of 1.02 percent.
Net interest income grew 8 percent to P11.17 billion year-on-year as revenues from loans rose 8 percent, while interest expense dropped 6 percent as a significant block of high-cost funds (time deposits) was replaced by low-cost checking and savings accounts, which grew 16 percent.
This led to an improved net interest margin of 3.36 percent, from 3.23 percent a year ago.
Non-interest income declined 3 percent to P2.96 billion as trading gains fell 5 percent to P365.22 million, which was offset by the 15-percent increase in earnings from service charges, fees and commissions which stood at P1.38 billion.
Total assets expanded 4 percent year-on-year to P472.06 billion in tandem with the growth of the bank’s core businesses.