San Miguel invests ₱5.5 billion capital into Bank of Commerce

SMC Equivest Corp, a wholly-owned subsidiary of San Miguel Corp (SMC),  has invested ₱5.5 billion capital into Bank of Commerce (BankCom) mainly to upgrade the bank’s commercial banking license to a universal banking license.

The investment was made through the purchase of the bank’s preferred shares.

The net proceeds of the investment will also be used to increase the Bank of Commerce funding base for accelerating corporate and consumer loan growth, support capital expenditures in upgrading its banking technology and offer a wider menu of financial services.

“We’re confident that in this time of the pandemic, the banking sector will be essential to our country’s economic recovery, and will provide invaluable help both to our industries and Filipinos,” said Ramon S. Ang, SMC President and COO and SMC Equivest Chairman and President.

“Bank of Commerce can help fulfill the needs of both businesses and consumers for loans and other financial services at this critical time,” Ang added.

Ang also said the investment affirms the companies’ optimism in the banking sector as well as their commitment to support the Bank of Commerce in becoming a universal bank and expanding its business prospects.

Apart from boosting the bank’s financial capacity, the capital investment will help enable the bank to improve operational processes through automation, strengthen cybersecurity, and offer product integration with financial technology players and other banking partners.

Before the investment, BankCom was the 16th largest bank in the Philippines in terms of assets and 17th in terms of capital as of March this year.

SOURCE: Business Mirror