THE BANGKO SENTRAL ng Pilipinas (BSP) has fined Bank of the Philippine Islands (BPI) P1 million for failing to cut its authorized capital stock on time, the lender said on Thursday.
In a stock exchange filing, the Ayala-led bank said it got fined for failing to comply with the General Banking Law of 2000 in the disposal of its Treasury shares arising from its merger with BPI Family Savings Bank, Inc.
BPI shares gained 0.96% or a peso to end at P105 apiece.
The Philippine central bank had given it six months to cut its authorized shares.
In a disclosure on Sept. 29 last year, the lender said it had abandoned a plan to retire Treasury shares from the merger with its thrift banking arm after the BSP said this could violate the law. The merger between BPI and its thrift bank unit took effect on Jan. 1 last year.
“Eventually, BPI informed the BSP of the approval of the declaration of property dividends as BPI’s mode for disposal of the Treasury shares, which, however, will only be completed after obtaining regulatory approvals,” BPI said.
The bank went past the six-month deadline for declaring property dividends as a way to dispose of the Treasury shares, it added.
The Securities and Exchange Commission approved the declaration of property dividends on Wednesday.
BPI declared property dividends by issuing 406.18 million common shares worth P33.04 billion.
BSP Deputy Governor Chuchi G. Fonacier declined to comment when asked to provide details of the fine. BPI Corporate Communications Manager Josefina Silvestre did not immediately reply to a Viber message seeking comment.
The lender booked an attributable net income of P12.134 billion in the first quarter, 51.98% higher year on year. — Aaron Michael C. Sy