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Friday, September 27, 2002
Exportbank depositors’ roadshow set
EXPORT and Industry Bank (Exportbank) will hold a Stockholders’ and Depositors’ Roadshow at 2 p.m. today at City Sports Club Cebu, Ballroom I.
Significant developments on the merger of Export and Industry Bank with Urban Bank Inc. (UBI) and Urbancorp Investments Inc. (UII) and notable progress achieved in the UBI/UII rehabilitation plan will be discussed with the presentation of the Bank’s “Management Report.”
This is the same “Management Report” presented when Exportbank held its first annual stockholders’ meeting as a merged bank at the Exportbank Plaza in Chino Roces and Sen. Gil Puyat avenues in Makati City last Sept. 12, the bank said in a statement.
In that meeting, the shareholders elected its new board of directors. Elected to the board were Sergio Ortiz-Luis Jr., chairman; Reynaldo David, vice chairman; Benjamin Castillo, president; directors Dionisio Carpio Jr., Sai Chong Cheng, Donald Dee, Paterno Dizon, David Ng, Pauline Tan, Victor Te, Hermenegildo Zayco, Alfredo Yao, Jeffrey Yao, Jose E.B. Antonio, Wong Say Hing, Oscar De Venecia, Francis Lee and Zhixiang Zhang.
On Jan. 31, 2002, the Securities and Exchange Commission approved the legal merger of EIB, UBI and UII.
As of last June 30, the cash flow and liquidity position of the bank was more than adequate to cover the first year gross commitments for principal and interest payments under the Liability Servicing Plan (LSP) amounting to about P4.1 billion and was ready to service outstanding obligations scheduled on Sept. 13.
The bank has discounted more than P1.6 billion of the liabilities for the first year through deposits and placements as early as the second quarter of 2002.
By Sept. 9, Exportbank had fully paid out all Year 1 claims, thereby fulfilling its obligations ahead of schedule.
The bank has begun the settlement of Year 2 Repayment Notes, due on September 2003, under the LSP.
Loans
For the first year of the rehab plan, the bank has secured P2.6 billion in collections from loans, excluding the sales proceeds from non-performing assets.
Non-performing loans (NPL) have also been slashed from 64.27 percent as of merger date to 36.37 percent as of Aug. 31, 2002. Furthermore, Export-bank projects the NPL ratio to go down to 26.11 percent by the end of this month.
The legal merger accelerated the reopening of former UBI Branches and required the relocation of its head office to the Exportbank Plaza.
So far, the bank has reopened seven former UBI branches: the Chino Roces; Cebu Business Park; Bacolod; Alabang; Greenhills; Quintin Paredes, Binondo; and Escolta branches.
Five more branches are scheduled to be reopened this year: the Aurora blvd.; Legazpi Village, Makati City; Gil Puyat, Makati City; Navotas; and Quezon Avenue, Quezon City branches.
The merged bank has likewise reengineered subsidiary EIB Realty Developers, Inc. (formerly Urbancorp. Realty Developers Inc. or URDI) and reopened EIB Securities Inc. (formerly Urbancorp Securities Inc. or USI).
The implementation of the LSP repayment note discounting mechanism translated into interest cost savings, which together with higher Treasury dealing and positioning income enhanced profitability for the merged bank, bringing its net income to P336.8 million as of Aug. 30, 2002.
The bank’s performance brought its standing in the whole banking industry from 38th to 22nd in terms of total assets and from 24th to 18th (among its peer banks) in terms of total capital.
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