MANILA – Tan-led Philippine National Bank (PNB) targets to dispose of this year at least P1 billion to P2 billion worth of its real and other properties acquired (ROPA).
In a briefing Tuesday, PNB Executive Vice President and Chief Financial Officer (CFO) Nelson C. Reyes said they were keen on disposing of soured assets to help boost the bank’s revenues.
The bank currently have about P11-billion ROPA, down from around P22 billion three years ago.
“We’re looking for opportunities to dispose these further,” he said.
In an interview by PNA, Reyes said they wanted to cut ROPA by nearly 20 percent this year.
“Maybe around P1-2 billion of the total volume either this year or next year,” he said.
Reyes said half of the foreclosed properties were commercial in nature, which are mostly composed of raw lands, while the other half was retail assets composed of housing units.
He said disposing the retail ROPA would be hard because it covered thousands of properties unlike the big ticket commercial properties situated in industrial areas, among others.
Asked on how the bank will dispose these properties, Reyes said “it really just depends on who approaches us.”
The bank official explained that outright sale is the main mode of ROPA disposal, but noted that converting a foreclosed property into an earning asset is another one. This is what the bank plans for the 8,000-square meter property at the corner of Gil Puyat Ave. and Paseo de Roxas St. in Makati City that singer-businessman Ramon “RJ” Jacinto bought from PNB but failed to pay.
Reyes said PNB will use the property to construct its future headquarters, but pointed out that the plan is also to lease around 80 percent of the space.
“We’re still planning on what kind of property that would be. Probably it’s mixed used office and retail,” he added.
