The Philippine National Bank (PNB) has announced significant structural changes, including the planned closure of its Bahrain Representative Office and the dissolution of two internal units.

The moves are part of a broader strategy by the Lucio Tan Group’s banking arm to streamline operations as it repositions for the future.

In a regulatory filing, PNB confirmed that its board of directors had approved dissolving its consumer finance and enterprise services sectors.

The bank’s strategy and sustainability group has also been absorbed into the office of the Chief Financial Officer as PNB focuses on its other markets.

The planned closure of the Bahrain office, which is still subject to regulatory approval, is a response to stiff competition from banks and non-banks in the remittance business across its 17-country footprint.

To maintain its market position, President and CEO Edwin Bautista stated earlier that the bank was looking to unlock new revenue streams by exploring the use of technology, such as data science and artificial intelligence, in its businesses.

The restructuring follows a period of strong performance for the bank, which saw its earnings surge by 22% to PHP 12.5 billion in the first semester, driven by higher demand for loans.

The bank is also undergoing leadership changes, with two senior executives set to depart in October.

Featured image by mindandi via Freepik.