PNB Trust Business grows 82%
MANILA, Feb 22 (PNA) — The Philippine National Bank said its Trust assets nearly doubled in 2011, likely among, if not the highest growth rate in the industry, on the back of unique and renewed product offerings.
The Bank’s assets under management (AUM) grew 82% from P30.5 billion in 2010 to P55.6 billion in 2011 due to improved volumes for corporate and personal accounts. PNB’s total corporate trust funds now stand at P23.86 billion, a 185% jump from its year ago level of P8.34 billion. Personal accounts on the other hand are up 103% ending at P13.9 billion.
According to Trust Officer and First Senior Vice President Rafael G. Ayuste, Jr., the performance is a direct result of the Bank’s unique product offerings.
“We wanted to create a value proposition that is different from the available products in the market,” said Ayuste.
PNB introduced last year its branded employee benefit trust product, PNB Employee Enrichment Solutions (EES). The product, according to Ayuste, approaches employee benefits from the standpoint of addressing human resource issues in terms of talent attraction, retention and loyalty.
“This product has delivered us 14 retirement funds last year which is no mean feat considering that the normal gestation for such accounts is anywhere from one to three years,” revealed Ayuste.
Ayuste further reported that the Bank’s personal Trust accounts have likewise improved creditably due to its unwavering commitment to providing products that meet clients’ return objectives as well as their long-term financial goals.
“At the end of the day, what we’re building is a long-term relationship that looks after the best interest of our clients,” said Ayuste, “and that means meeting their needs at every stage and aspect of their life.”
PNB’s roster of products includes the retail unit investment trust funds (UITF), two of which have delivered top performances in 2011. The Mabuhay Prestige Fund, a balanced fund, consistently topped 14 other funds in its class for 45 consecutive weeks in terms of year-on-year absolute returns. For 2011, its average year-on-year returns since inception was 7%. The Bank’s peso money market fund, Mabuhay Prime, consistently ranks in the top 5 performers among 17 other funds in the market with an average year-on-year return of 3% in 2011.
PNB is currently in the process of merging with subsidiary Allied Banking Corporation which is expected to seal its Number 4 standing in the industry. “We are excited for the prospects this development brings,” said Ayuste. “It provides us an even greater platform for strengthening our market base, and that includes our Trust business.” (PNA)
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