The merger between Philippine National Bank (“PNB”) and Allied Banking Corporation (“ABC”), originally targeted for end 2008, is now expected to be completed by middle of 2009. There is a need to comply with US banking regulations requiring ABC to divest its 28% equity share in California-based Oceanic Bank prior to the merger.

Even with this development, preparations of both banks for the merger are in full swing and on track. Significant progress has been made on the following: identification and synchronization of IT systems; alignment of products, policies and procedures; branch rationalization; and review for consolidation of required regulatory documentation.

This early, PNB and ABC have started to cascade the benefits of the merger to their customers. The ATM systems of PNB and ABC have been integrated to allow each bank’s clients to use either bank’s ATM network free of charge. This is despite the fact that PNB and ABC are on separate ATM networks.

We are confident that the merger will be completed expeditiously once the approval of the U.S. banking regulators is obtained.

For more information on the merger, you may refer to our Frequently Asked Questions page.For inquiries, please go to our Feedback Form page to email your concerns.