060107: PNB banks on more remittances

By Jun Vallecera

Reporter

THE Philippine National Bank has taken the opposite view to the prediction of the Bangko Sentral ng Pilipinas that the flow of remittances from overseas Filipino workers would soon slow down. PNB president Omar Byron Mier said they have prepared for an increase of more than 16 percent this year. The bank, which used to dominate the worker remittance business, expects to pull in between $2.6 billion and $2.8 billion this year. “Our remittance business is doing well again.” Lending remains the PNB’s main income generator but the remittance business now lorded over by the Metropolitan Bank and Trust Co. and the Bank of the Philippine Islands, is a close second, according to Mier. The government expects worker remittances to reach $14 billion this year or about 10 percent more than the $12.7 billion last year. In the first quarter alone, remittances already grew by 24 percent to $3.5 billion, the result of better and more numerous service providers luring OFWs with very competitive service charges. Mier said PNB’s share of $2.4 billion in remittances last year was 19 percent of aggregate remittance reported by the BSP. That expansion was aided in part by two new wholly owned remittance subsidiaries in Austria and Spain in addition to the opening of two more bank branches in Hong Kong. In April, PNB also opened two subsidiary branches in Paris, France, and in Barcelona, Spain, that brought the total number of PNB overseas offices to 106. Mier said this was the largest global network of branches and offices among local banks. This network is apart from remittance tie-ups that PNB has with such firms as the United Overseas Bank and the Development Bank of Singapore and its alliance with Mizuho Bank of Japan.

 

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