Initial Public Offering

Another milestone in the Bank's history was achieved in October 1996 when the Bank took its place among the firms listed on the Philippine Stock Exchange, making it the first private development bank in the history of Philippine banking to raise equity from the capital market through an Initial Public Offering (IPO). A total of 18,818,000 new unclassified shares with a par value of P10.00 per share were issued and fully subscribed — a clear indication of strong investor confidence in the future of the company. About 74% of the net proceeds from the IPO were utilized to fund the Bank's loan expansion, while the remaining balance was allocated for investments in new branches and information technology.

Asiatrust Bank's massive capital expansion and enlarged ownership base signified 1999, the Bank installed its newly-acquired International Comprehensive Banking System, a fully integrated on-line banking system that can process and maintain large volumes and varieties of transactions and customer information more efficiently, and enhance the Bank's capability to provide products and services far beyond the traditional offerings and conventional delivery systems. The new system utilizes a relational database software architecture that can help improve total banking relationship to achieve the Bank's goal of continuously growing with its customers.

Moreover, as part of Asiatrust Bank's transformation, a complete corporate and retail image enhancement was undertaken by the Bank with the end in view of creating a strong retail branding for one of the country's leading financial institutions for the small and medium enterprises. The re-imaging program, which was launched in the second half of 1999, included the creation of a new corporate identity and a complete signing system. One outcome of this retail identity project was the Bank's distinctive blue-and-green retail graphics system that stands out amidst the highly traditional and conservative identities of its competitors, while establishing the Bank's dynamic and aggressive stance in the market.

A New Partner

In August 1999, Social Security System (SSS), the largest pension fund in the Philippines, acquired around 20% equity stake in Asiatrust Bank. Approximately one-half of these holdings were purchased from the ASEAN Strategic Capital Ltd., which prior to its equity divestment had owned 8.6% of the Bank. ASCL's equity divestment was part of an earlier agreement with the Bank's shareholders and was timed after the Bank's IPO. Without a doubt, the entry of SSS into Asiatrust Bank has provided the Bank with a solid financial backing.

Working for the Filipino Entrepreneur

Throughout its forty years of dedicated banking service, Asiatrust Bank has endured with unwavering strength the many socio-political, economic and financial upheavals that have plagued the country. It was precisely during those difficult times that the Bank has proven itself capable of transforming threats into opportunities and challenges into successes. Its long history is characterized by a vision and a remarkable constancy of purpose as the Bank relentlessly pursued its mission of selling trust, confidence and financial expertise through service excellence, continuous niching and innovation to become the leading financial institution for the Filipino entrepreneur.

The Bank has always believed that the small and medium enterprises play a crucial role in the country's economic growth and prosperity. After all, SMEs account for more than 95% of all Philippine business enterprises and they provide a viable and forceful mechanism for achieving a balanced and sustainable economic growth through their contribution to the generation of employment and income, regional development and revitalization, and foreign exchange earnings. In addition, they contribute to the optimal utilization of indigenous resources, the creation of forward and backward linkages with existing industries and the development of entrepreneurial skills.

The Bank's foresight and responsiveness have paved the way not only for its own growth but also for its SME clients, which have advanced smoothly and rapidly throughout the years. Its four-decades of achievements is evidenced by the numerous awards and commendations the Bank has received for its outstanding performance in support of the small and medium enterprises. The most recent award acquired by the Bank was for its pioneering banking product for the Filipino entrepreneur called the CA/SA Manager which won in the Asian Banking Awards 2000 in a ceremony that took place during the Asia Pacific Banker's Congress in Kuala Lumpur, Malaysia in May 2000. The Asian Banking Awards is Asia's most prestigious annual awards program. It was organized to give recognition and honor to Asian banks for outstanding, innovative and world-class products and programs.

After four decades of growing alongside the Filipino entrepreneur, Asiatrust Bank has emerged to become a dominant force in SME banking. Having laid down a firm foundation in building up for the future, the Bank now stands poised to capitalize on the exciting opportunities that an increasingly competitive, complex and changing marketplace creates. The major goals of the Bank are to continue upgrading its place in the financial market and to enhance its developmental role as the premier financial intermediary for the Filipino entrepreneur. Asiatrust Bank's vision and experience in working with new and growing smalland medium enterprises will certainly go a long way in shaping the future of the nation. Growing alongside the Filipino entrepreneur has been and will continue to be Asiatrust Bank's principal strength.