Friday, December 26, 2008

PNB-Allied Bank merger by mid-2009


As of December 27, 2008, here's the latest news for those who bank with PNB and Allied Bank:

The merger between Philippine National Bank (PNB) and Allied Banking Corp., originally targeted for end-2008, is now expected to be completed by middle of 2009, PNB said in a statement.

PNB said there was a need to comply with US banking regulations requiring Allied Bank to divest its 28-percent equity share in California-based Oceanic Bank prior to the merger.


It said that even with this development, preparations of both banks for the merger were in full swing and on track.


“Significant progress has been made on the following: identification and synchronization of IT systems; alignment of products, policies and procedures; branch rationalization; and review for consolidation of required regulatory documentation,” the statement said.


The ATM systems of PNB and Allied Bank have been integrated to allow each bank’s clients to use either bank’s machines free of charge despite the fact that the two banks are on separate ATM networks.


The bank said that in support of the merger, organizational changes in the board and management of Allied Bank and PNB will be implemented beginning Jan. 1: Domingo T. Chua has resigned as director of PNB and has been elected as chairman of Allied Bank; Estelito P. Mendoza has been elected as director of PNB, filling the vacancy left by Chua; Gloria Tan-Climaco has been elected director of PNB, taking the place of Macario U. Te, who will retire effective Dec. 31; and PNB executive vice president for global operations Anthony Q. Chua will be seconded to Allied Bank as chief operations officer.


Post-merger PNB will become the fourth-biggest domestic bank in terms of total assets and branch network, with the most extensive international footprint among local banks.


Source: http://business.inquirer.net/money/breakingnews/view/20081227-180164/PNB-Allied-Bank-merger-by-mid-2009


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