MAYBANK Philippines, Inc. has secured the approval of Malayan Banking Berhad, its parent bank, for a $100-million additional capital infusion, an official said.
“We got the approval of the Maybank Group’s board for the capital infusion last Oct. 25,” Maybank Philippines Corporate Planning Head Benedict F. Borlado said in a phone interview last Friday.
“We hope to receive the $100 million additional capital within the first quarter next year,” he said.
The additional equity infusion is double the $50 million that Maybank Philippines got in December 2010.
The first infusion allowed the bank to pursue more business opportunities.
Mr. Borlado reiterated the new funds will be used by the bank to beef up its capital in preparation for the higher capital requirements of Basel 3. The bank will also be taking in more risks as it scales up its operations.
Universal and commercial banks are required to have a capital adequacy ratio (CAR) of 12.5% starting Jan. 1, 2014 under Basel 3 from 10% under Basel 2.
As of end-August, Maybank Philippines had capital totaling P5.6 billion while its CAR stood at 14.23%
The bank currently has 54 branches and plans to put up another in Davao before the end of the year.
It targets to double its branch network by 2015 to reach more clients nationwide.
Malayan Banking Berhad, Malaysia’s largest lender, in September raised $800 million from the sale of 10-year subordinated notes that carried a 3.25% yield.
Datuk Seri Abdul Wahid Omar, Malayan Banking Berhad president and chief executive officer, said proceeds of the debt sale will be partly used to bankroll its operations in Indonesia, the Philippines and other regional markets.
Maybank Philippines’ net income surged by 304.04% to P359.6 million in the first semester.