Philippine National Bank - Tokyo Branch
MITA KAWASAKI Bldg 2F, 2-11-15 Mita, Minato-ku, Tokyo 108-0073 Japan

Tel. (03) 6858-5910
Rates Information (03) 6858-5940/6858-5950
URL: http://www.pnb.com.ph/japan

June 30, 2024
To Our Valued Clients,

Disclosure Report for FY 2023
This disclosure document is prepared in accordance with Article 21 of the Banking Act andArticle 19-2 of the Ordinance for Enforcement of the Banking Act (Public Inspection of
Written Explanation Concerning the Condition of Business and Assets) and it represents theoperational and financial status of the Japan Branches as well as the entire bank.

Roderick T. Enriquez
Chief Representative and Managing Director
Philippine National Bank, Japan Branches11. Branches(1) Profile of Philippine National Bank, Branch Offices in Japan (“the Bank”)
A. Philippine National Bank Tokyo BranchRoderick T. Enriquez, Chief Representative and Managing Director
Address: Mita Kawasaki Bldg. 2F, 2-11-15 Mita, Minato-ku, Tokyo
B. Philippine National Bank Nagoya Sub-Branch
Representative: Marco C. Macaraeg
Address: Nishiki 324 Bldg. 7F 3-24-24 Nishiki, Naka-ku, Nagoya, Aichi(2) Business Profile of Philippine National Bank in Japan
A. Management Policy
As stated in Appendix 1 “Branch Profile”, the Bank’s core business resides inproviding to Filipino residents in Japan high quality remittance services boundfor the Philippines. Without changing this basic policy, the Bank concentrates
its available resources on the retail banking business and the Bank is making
every effort to improve its service quality for clients and protect their interests.
Regarding remittance services to China which started in July 2009, the businessperformance used to show steady growth with technical interns and trainees from
China, but the number of both remitter registration and actual number ofremittances has been decreasing recently. Since China still occupies the biggest
share of foreign residents (24.46% at December 2023; data from Immigration
Office), the bank will work on improving service quality with focus on userfriendliness for those clients and is looking to revive the transaction volumes.
As for other services, the Bank has achieved the successful record in the housing
loan service with the strong demand for the real estate investment in thePhilippines. To cope with this trend, the Bank has strengthened internal systems.
B. History
1) September 1992
Opening of Tokyo Representative Office2) June 3, 1996
Opening of Tokyo Branch (approved on April 30,1996)
3) May 19, 2003
Opening of Nagoya Sub-Branch4) December 17, 2020 Foreign Bank Agency Services License
5) For other details, please refer to Appendix 1 “Profile of Branches” andAppendix 2, “Profile of Head Office”
C. Outline of BusinessOne of the Bank’s core business activities in Tokyo is overseas remittanceservices, especially for Filipino residents in Japan who are remitting money to
the Philippines for family support. Recent statistics shows that there are about
310,000 Filipino residents in Japan, in which about 50,000 are technical interns
and trainees. The bank also provides services such as deposits (in JPY and USD),
assistance service for opening of Philippine-based accounts at domestic PNB
branches and loans for purchasing real estate in the Philippines. Please refer toAppendix 1 “Business Outline” for further details.
Nagoya Sub-Branch offers remittance services and assistance services for
opening of Philippine-based account at domestic Filipino branches only.

2

D. Business Results
1) Statement of Condition
As for the overseas remittance transactions in 2023, both number and volume
are lower than the previous year. Total remittance items for 2023 is about 76,000,
decreased by 11.60% from previous year. Total volume is JPY 13,340 million,
decreased by 9.60% or JPY 1,410 million from the previous year.
While overseas remittance business has been declining, the housing loanbusiness has recorded a notable achievement in 2023.
The total number of new loan releases for the period was 42 (an increase of
20.00 % from the previous year), while the amount was 382 million yen, an
increase of 62.60% from the previous year.
2) Balance Sheet/Profit and Loss Statement
In addition to Appendices 1 and 2, which are attached, please refer to “Balance
Sheet” and “Profit and Loss Statement” (Appendices 3 and 4).
E. Others
1) Applicability of Deposit Insurance
Neither the deposit insurance system of Japan nor that of the Philippines isapplicable to deposits placed with the Bank.
2) Designated Dispute Resolution Institution
Inquiries related to problems or complaints concerning the Bank are to be
directed to the institution below:
Designated Dispute Resolution Institution under contract with the Bank isJapanese Bankers Association.
Contact Point: Japanese Bankers Association, Customer Relations Center
Phone Number: 0570-017-109 or 03-5252-3772(3) Challenges and Issues to be addressed by in the Bank’s Management
A. Risks, Internal Control & Compliance
Considering that one of the Bank’s main business operations is overseas
remittance services, the Bank is aware that the most important issues to beaddressed pertain to operational risk and regulatory compliance, putting
AML/CTF above other risks. For the Bank as the licensed Financial Institution,
regulatory compliance holds particular significance in the conduct of the Bank’sbusiness, and the Bank believes that establishment of a robust corporate
governance and an internal control system is one of the key action items to beachieved through sustained efforts and initiatives.
Moreover, the Bank has established internal policies, guidelines and regulationsin accordance with the “Guidelines for Preventing Damage for Corporations
from Anti-Social Forces (Kigyo ga Hanshakai-teki Seiryoku niyoru Higai wo
Boshi surutameno Shishin ni tsuite)” issued by Ministerial Committee for Crime
Prevention (“Hanzai Taisaku Kakuryo Kaigi Kanjikai Moushiawase”) dated
June 19, 2005 and Action Charter of Japanese Bankers Association with a viewto exclusion of relationships with Anti-Social Forces (ASFs) . In line with thosestandards, efforts are in progress to put adequate control in place to improvecustomer convenience and to strengthen customer protection including revision3

of the Terms & Conditions for Deposit Account, etc. The Bank’s basic policy
concerning Elimination of Anti-Social Forces is posted on the website.
B. Personal Data Protection Act
The Act on the Protection of Personal Information was enacted in 2003 and has
been fully implemented in 2005. Since then, it has been revised repeatedly. It
was most recently revised in 2020 and came into effect in April 2022. In order
to comply with newly amended regulations, the Bank is building an internalmanagement system while reviewing related rules or guidelines within the Bank.
C. Act on Prevention of Transfer of Criminal Proceeds
The prevention of so-called money laundering, the laundering of funds obtained
from crime, and the blocking of the supply of funds to support the activities ofterrorist organizations are urgent issues for governments around the world. Inorder to cooperate with the international community, the Act on Prevention ofTransfer of Criminal Proceeds (Criminal Proceeds Act) was enacted on March
31, 2007, in Japan. Since then, the law, subordinate laws and regulations, andvarious other regulations have been revised in response to changes in social
conditions. The Bank is striving to establish a necessary system in a timely andeffective manner.
2. Head Office(1) History of Philippine National Bank (the “Bank”)
The Bank was established on July 22, 1916, as a government-owned bank. After the
Independence of the Philippines after the WWII and until a new and separate Central
Bank of the Philippines was established in 1949, the Bank had a concurrent function
as the central bank for the government. The current central bank of the country,
Banko Sentral ng Pilipinas (BSP), was newly established in 1993 under the newCentral Bank Act. After WWII, the Bank maintained its activities as a national bankin close collaboration with the government. Actions for privatization started in 1989
(sell-off of shares owned by Philippines Deposit Insurance Corporation in themarket), and the Bank was fully privatized in July 2007, to date.
On April 30, 2008, the Bank announced a merger plan with Allied Banking
Corporation (ABC) which was established in 1977. On February 9, 2013, the Bank
and ABC consummated their merger under the name of Philippine National Bank.
As a result, numbers of domestic and oversea branches are substantially increased.
Please refer to Appendix 2. “Profile of Head Office” for more detailed information.
(2) Offices (including subsidiary’s offices, as of the end of December 2023)
Domestic
631
Overseas734

(3) Major shareholders
As of December 31, 2023, the number of shareholders is 36,081 and the total numberof shares issued and outstanding is 1,525,764,850. Of those, the top ten major
shareholders are:1) PCD Nominee Corporation (Filipino)2) Key Landmark Investments Ltd.
3) True Success Profits Ltd.

13.39%
8.74%
5.38%

4) Caravan Holdings Corporation

5.38%

5) Solar Holdings Corporation

5.38%

6) Prima Equities & Investments Corporation

4.70%

7) Leadway Holdings, Inc.

4.28%

8) Infinity Equities, Inc.

4.03%

9) Pioneer Holdings Equities, Inc.

2.25%

10) Multiple Star Holdings Corporation

2.02%(4) Business Outline(In million Pesos)

23/12

22/12

21/12

20/12

19/12

1,210,549

1,178,504

1,202,938

1,231,134

1,142,291

Deposits

927,971871,228

894,924

890,288826,045Loans

616,711613,612630,542

616,061

651,470

Net Earnings

17,966

10,07733,527

2,625

9,761

Earnings Per ShareP11.78

P7.56

P20.72

P1.71

P7.05

Total Assets

5Appendix 1[Profile of Branches](As of December 31, 2023)
Name
Branch Name
Address
Representative
Start-up Date
Business Outline

Major Figures(in Million yen)(on consolidated
basis, respective
figures ofbranches areshown below)

Philippine National Bank – PNB
Tokyo Branch and Nagoya Sub-Branch
Mita Kawasaki Bldg. 2F, 2-11-15 Mita, Minato-ku, Tokyo
Roderick T. Enriquez, Representative in Japan, Tokyo BranchManagerJune 3, 1996 (Tokyo Branch / Approval received on April 30,1996)
May 19, 2003 (Nagoya Sub-Branch)
1) Core Business activities are Remittances (mainly to thePhilippines and Mainland China), Loans to Residential Real
Estates, Deposits. Recently, the Bank started expanding its
banking business with corporate clients.
2) Main Customers: Individuals Filipino residents and Filipino
spouses living in Japan. The Bank also focuses on developing new
corporate clients including trading companies, travel agencies, IT
companies, language schools and real estate agencies. In line withthe expansion of corporate banking business, the number ofJapanese and Filipino corporate clients who have business
relationship with the Philippines.
3) Business: Core business is to provide homeward remittanceservices for Filipino or Chinese residents in Japan who areremitting money to the Philippines or to China for family support
purposes. There are gradual increases in business with corporateclients who have close relationships with the Philippines.
4) Achievement and Revenue Base: The number of remittancetransactions has grown steadily, and business has beensuccessfully keeping a good revenue base since the opening of
branches in Japan, notwithstanding a small decrease in 2005. The
Bank's business generally showed a favorable trend, and therevenue base remained stable. However, since April 2010, when
non-bank money-transfer services providers were allowed to enter
into the market for overseas remittance business, the number andamount of the remittances handled by the Bank have significantly
been affected since the second half of 2012. The Bank is currently
diligently working on measures to reverse the trend.
5) Features: The Bank’s main business lines are in retail banking
services such as homeward remittance, deposits and loans for
Filipino residents in Japan, but the Bank is trying to diversify its
business model by strengthening corporate banking business.
FY2021
FY2022
FY2023
Total Assets
39,92438,351
34,080Loans
36,63535,181
30,104
Deposits
497
446
473
Net Operating
298
425
332
ProfitProfit for
199
268
197
Current Term
6

Number of
Employees

Licenses andPermissions

Other groupcompanies in
Japan

47
46
46
(Breakdown)(Breakdown)(Breakdown)
Concurrent 0
Concurrent 0
Concurrent 0
Bank 0Bank 0Bank 0
Securities 0
Securities 0
Securities 0
Others 0
Others 0
Others 0
ROA
0.50％
0.70%
0.58%
OHR
55.99％
52.33%
57.62%
1) Received a full banking license (April 30, 1996).
2) Obtained an approval to open a current account with BOJ (May20, 1996)
3) Received a foreign exchange license (June 13, 1996).
4) Obtained an approval to open an offshore account (November 27,
1996)5) Obtained an approval to open Nagoya Sub- Branch (April 24,
2003)6) Received a Foreign Bank Agency Services license (December17,
2020)
N/A

ROA = Return on Assets
OHR = Over Head Ratio

Major Figures of Tokyo Branch and Nagoya Sub- Branch (as of the end of December
2023)(in million Yen)Tokyo

NagoyaTotal

Total Assets

33,953

127

34,080Loans

30,104030,104

Deposits

473

0

473

Net Operating Profit

324

8

332

Profit for current term

191

6

197

Number of Employees

38

8

46

7

[Business Outline]
Services
RemittanceContent
1) Remittance services to the Philippines for Filipino residents inJapan.
2) Remittance services for Japanese corporate clients for thesettlement of import of goods and services from the Philippines.
3) Remittances to the Philippine Retirement Authorities (PRA) forJapanese retirees to obtain permanent retirement residence visas;
and4) Other remittance services related to the above.
In addition to existing remittance methods such as 1) remittance overthe counter, 2) remittance by cash registered mail (Genkin
Kakitome), 3) remittance by funds transfer through Mizuho Bank,
the Bank also provides “Virtual Access” which leverages the systemowned by Mizuho Bank and a similar scheme arranged with Japan
Post Bank (JPB) named “Postal Link” using remittance cards
provided by JPB. The Bank is making ongoing efforts to promote
new services for greater convenience to customers.

Deposits

1) Yen and Dollar Savings2) Act as liaison for Filipino residents in Japan or Japanesecustomers who purchase a condominium in the Philippines forinvestment, to assist them in the opening of new accounts atdomestic branches in the Philippines in connection withremittances related to such accounts.* *Checking account is oneof essential items in the settlement of real estate transactions in
the Philippines

Loans

The Bank provides housing loan facilities to Filipino workers inJapan or local Japanese who want to purchase real estate in thePhilippines by taking real estates in the Philippines as collateral.
Under the scheme, repayments are to be in JPY and to be made from
his/her income earned in Japan. It is noted that purchase of realestate by non-Filipino persons is limited to one unit of condominium
or apartment houses. Other than housing loans, the Bank also started
handling large-sized corporate finance items.

Foreign Bank
AgencyServices

The Bank provides an assistance of account opening at domestic
branches in the Philippines for Filipinos in Japan and Japanesenationals who has the necessity to open accounts in the Philippines.

8Appendix 2[Profile of Head Office]AddressPNB Financial Center, President Diosdado Macapagal Boulevard,
Pasay City 1300, Philippines
Representative

Florido P. Casuela, President and CEO

Profile1) The Bank was established on July 22, 1916, as a governmentowned bank. After the Independence, it had kept a concurrent
function as a central bank until the establishment of Central Bankof the Philippines.
2) After the establishment of the Central Bank in 1949, the Bank
operated as the largest commercial bank and started universalbanking operation services. The Bank has been a state depositorybank since its establishment.
3) Under the government initiative to privatize government-owned
companies, privatization of the Bank was initiated by listing on the
Manila Securities Exchange in 1989 and gradually releasing theshares owned by the government. The sell-off of governmentowned shares and public offer were done in July 2007. As a result,the Bank was fully privatized.
4) On February 9, 2013, the Bank and ABC (Allied Banking
Corporation ） were fully merged by way of a share-for-shareexchange with the Bank as the surviving entity.
5) Business Activities: As a universal bank, the Bank is engaged in awide range of services including deposits, loans, foreign exchange,
trust services, securities, and investment trust.
6) Number of Offices: Domestic (631); Overseas (73)(as of December 31, 2023)
7) Overseas Business: The main business is homeward remittanceservices for overseas Filipino workers remitting to the Philippines.

Total Assets

1,220,005 Million Pesos (as of December 31, 2023)
3,115,182 Million Yen (TTM as of December 31, 2023 = 0.391632
Pesos/Yen)

Net Income

17,368 Million Pesos
44,348 Million Yen

Common Equity
Tier 1(CET1)
Minimum ratio of
CET1 in thePhilippines
Tier 1(CET1 + Additional)

Tier1+Tier2
Total Qualifying
CapitalAmount (Million Yen)
135,237 Million Pesos
345,317 Million Yen

Ratio (%)
16.85%
6.0 %

135,237 Million Pesos
345,317 Million Yen
142,059 Million Pesos
362,736 Million Yen

16.85 %

142,059 Million Pesos
362,736 Million Yen

17.70%

917.70%

Appendix 3
Balance Sheet (as of December 31, 2023)
Subject

AmountCash and due from banks

Subject
3,937

Call loans and bill bought
Receivables under resaleagreements
Guarantee deposits paidundersecurities borrowing
transactions

Other assets
Tangible fixed assets
Intangible fixed assets
Deferred tax assets
Customers liabilities for
acceptances andguarantees
Reserve for possible losses
on loans
Due from interoffice

Guarantee deposits
received under securities
lending transactions
Commercial paper
Borrowed money
Foreign exchange
liabilities
Other liabilities
Reserve for bonus
payments
Reserve for employee
30,104 retirement benefits
Reserve under special law
Deferred tax liabilities
Acceptances and
87 guarantees
15
0
71

△136

Due to interofficeSub-total
Brought In Capital2

Earned surplus carriedforward

Total assets

473

Payables under repurchaseagreements

Money held in trust

Loans and bills discounted
Foreign exchange assets

Deposits
Negotiable certificate ofdepositCall money and bill soldCommercial paper
purchased
Other debt purchased
Trading account securities

Securities(in million Yen)
Amount34,08010Sub-total
Total liabilities andCapital284

9730,12030,974
2,000
1,106

3,106
34,080Notes for Balance Sheet:
1. Depreciation of Real Estate and Movable Property is made using the following
method:Movable Property: The Bank employs a straight-line method, and the applicable rates
are in accordance with the standard rates established by local tax
authority.
Real Estate:
None is owned by the Bank.
2. Exchange rate (Telegraphic Transfer Middle: TTM) is applied as standard when the
Bank converts foreign currency denominated assets into that in local currency(Japanese Yen).
3. As for Allowance for Doubtful Accounts, it is calculated in accordance with theoperating procedure manual of the Bank by estimating the rate of collectability of each
doubtful account. This is applicable only to housing loans.
Among all the loan assets, the Bank has JPY109 million assets which are past-due formore than 3 months for individual loan. The Bank has JPY 25,173 million loans forcorporate loan at risk of bankruptcy.
4. Allowance for retirement is calculated in accordance with the terms of Employment
Rule of the Bank—it is 0.5 month per 1 service year.
5. Accumulated amount of depreciation for tangible fixed asset is JPY 24 million. The
Bank, including Nagoya Sub-Branch, has been using leased assets and assets reported
to the Balance Sheet are relatively small.
6. There is no credit extension to and borrowing from the Chief Representative of Japan
branches.
7. There is no major outstanding obligation for damage/loss compensation.

11

Appendix 4
Profit and Loss Statement
From January 1, 2023
To December 31, 2023
(in million Yen)
Subject

AmountOrdinary income

2,888Interest income(Interest on loans and bills discounted)

2,575
(

2,573)（Interest and dividends on securities） ()

Fee and commission income

122

Other operating income

160

Other ordinary income

31

Ordinary expenses

2,556Interest expenses

2,030（Interest on deposits） (0)

Fee and commission expenses
Other operating expenses
General and administrative477

expenses
Other Current expenses

49

Ordinary profits

332

Extraordinary gains
Extraordinary losses
Income before income tax
and minority interests

332

Income taxes
Adjusted corporate tax
Net profit（Net loss）
Net earned surplus forwarded
Due to head office

145
△10
197
909

Net earned surplus

1,106

12

Notes to Profit and Loss Statement:
1. Cost and/or Expenses subsidized by the Head Office(1) Subsidy from the Head Office (Salary of Expatriates, etc) None
(2) Non-direct expense allocation amount in JPY

2013 (FY H25)
2014 (FY H26)
2015 (FY H27)
2016 (FY H28)
2017 (FY H29)
2018 (FY H30)
2019 (FY H31/R1)2020 (FY R2)

150,866,073.142,391,387.105,675,116.80,312,810.38,833,578.36,889,456.38,518,667.58,968,818.63,372,250.-

2021(FY R3)
2022 (FY R4)
2023 (FY R5)

70,841,932.63,747,332.-

13