The stockholders of Bank of Commerce recently approved to increase the Bank’s authorized capital from 60 million to 100 million common shares in anticipation of the expansion plans of the bank in 2010.

Today, the bank’s total capital stands at P10.2 billion and with its outstanding Tier-2 capital qualifying Unsecured Subordinated Notes of P1.49 billion brings its total capital to P11.78 billion. The bank also reported that payments for subscriptions to common shares made earlier amounting to P1.13 billion are expected to come in within the year and will further boost the bank’s capital to P12.9 billion by year-end 2009.

With the latest increase in its authorized capital, it is expected that an estimated P7.0 billion in Tier-1 capital will be fully subscribed and paid up over the next 12 months. By the end of 2010, total capital of the bank would increase to P18.5 billion net of the Tier-2 capital qualifying notes, which the bank plans to prepay next year.

The expanded capital will enable the bank to leverage further and amplify its asset portfolio, anchored on its lending and trading businesses. Furthermore, the additional capital funds will finance several infrastructure upgrades, especially technology-driven products and channels like ATMs, point-of-sale (POS) payment systems, internet Banking services, and cash management services which are seen to boost its funding capabilities.