The Philippine National Bank (PNB) has announced that it will distribute property dividends to its shareholders on October 25, 2024, consisting of shares in PNB Holdings Corp. (PHC), representing 51% of its equity stake in PHC. This follows a series of approvals and filings with regulatory bodies, starting from the dividend declaration in April 2021 and finalized by the Securities and Exchange Commission (SEC) in December 2021.
Eligibility for Property Dividends
For shareholders to receive these dividends, they must have obtained an electronic Certificate Authorizing Registration (eCAR) issued by the Bureau of Internal Revenue (BIR). The eCAR is essential as it verifies compliance with tax obligations, which must be settled before receiving the dividend.
As of October 1, 2024, PNB reported that 902 out of 36,362 shareholders had been issued eCARs. Out of these, 224 shareholders had fully settled their obligations with the BIR, meaning they are set to receive their PHC shares by the distribution date. These figures, representing approximately 0.6% of total shareholders, reflect the current status of the dividend distribution process.
How the Process Works
The issuance of eCARs requires certain documentation from shareholders, including their Tax Identification Number (TIN) and the number of PHC shares they are entitled to. Additionally, shareholders must pay their Final Withholding Tax (FWT) to complete the process.
PNB has assured shareholders that it is actively working with the BIR to streamline the process. The bank has been sending out letters to shareholders explaining the status of their eCAR applications, outlining the FWT they need to pay, and detailing how to complete the necessary steps. PNB will continue accepting FWT payments to accommodate pending eCAR applications.
What Comes Next?
To manage the distribution of PHC shares and the sale of a portion of its stake, PNB has appointed PNB Capital and Investment Corp. as its financial adviser and lead arranger. The bank plans to sell at least 9.18% of its PHC equity stake. Shareholders will receive 0.156886919 PHC shares for each PNB share they own, as part of the property dividend.
While PNB is working diligently to address the delays in the eCAR issuance, shareholders are encouraged to fulfill their tax obligations and provide the required documentation to receive their dividends as soon as possible.
PNB’s Financial Performance
Despite the complexities in the dividend distribution process, PNB continues to demonstrate solid financial performance. The bank reported a 4.72% year-on-year increase in net income for the first half of 2024, amounting to P10.22 billion. This was achieved despite a slight 0.07% decline in net income during the second quarter due to increased provisions for potential loan losses.
PNB remains committed to its shareholders and is taking the necessary steps to ensure that all eligible investors receive their dividends in accordance with regulatory requirements.