Brief History of
PHILTRUST BANK
PHILIPPINE TRUST COMPANY
90th Anniversary
October 21, 2006
The Beginnings of the Bank
The Philippine Trust Company, now also known as Philtrust bank, is the first institution to engage in the trust business under Philippine law. It started operations on October 21, 1916, ninety years ago this day.
Its organisation arose from an increasing need for trust accounts, including guardianships, receiverships, assigneeships, and custodianships of wills and estates. Essentially, therefore, a fiduciary role was the guiding light of the Bank. Banking is indeed vested with public trust and confidence and the relationship between bank and client must remain deeply rooted thereon. From the beginning, the Philippine Trust Company anchored its hopes for greater service to the community on its commitment to trust and confidence.
The Philippine Trust Company started with 1 million authorized capital, of which 500,000.00 was paid up. Its office was located at the corner of Calle T. Pinpin and Muelle del Banco Nacional, Manila.
The first Board of Directors of the Company was composed of Phil C. Whitaker, Otto Vorster, Charles Ayton, Julius S. Reis, Thomas L. Hartigan, William J. O’Donovan, and W.H. Lawrence, the last three being prominent practicing lawyers at the time. Whitaker was elected President and served as such for more than six years.
As a result of the increasing recognition by the public of the convenience and practicability of the services of a trust institution, the business of the Company expanded. After the end of World War 1, the Office of the United States Veterans Administration, then known as the Veterans Bureau, engaged Philippine Trust Company to handle guardianships of veterans’ children.
Public Confidence Firmly Established
Public confidence in the Company rose speedily and creditably. In 1917, the trust operations reflected unprecedented progress and cash dividends were first declared.
On November 12, 1919, the stockholders amended the Articles of Incorporation of the Company to increase the directors from seven to eleven and “to carry on the business of banking, in all its branches, and to transact and do all matters and things incidental thereto; to invest in and to advance and lend money on real, personal and mixed securities, on cash, credit and other accounts, on policies, bonds, debentures, bills of exchange, notes, letters of credit and other obligations, on the deposit of title deeds, goods, wares, and merchandise, bills of sale, bills of lading, delivery orders, warehouseman’s certificates, notes, dock warrants and other mercantile indicia or tokens, bullion, stocks and shares to purchase, discount, issue, deal in and collect bills of exchange, letters of credit, other negotiable paper and other evidences of debt; x x x.”
In September, 1920, the Philippine Trust Company moved to new premises between Santa Cruz Bridge and Escolta Bridge, Manila. Among its first depositors were Manuel L. Quezon, Manuel C. Briones, Jose C. Zulueta, Roman Mabanta, and Eulogio Rodriguez, Sr.
In a short span of time, the Company assumed a leading and important role in the field of commercial banking. Its conservative policies became a hallmark of its operations. It was quickly rewarded by the favourable and enthusiastic response of its depositors and patrons. Its enduring strength stems from a conservative banking policy in every kind of economic environment. That is the main reason people bank with Philtrust and stay with Philtrust. They appreciate the fact that the Bank maintains an adequate capital base, high liquidity, and superior asset quality.
In 1935, it opened two agencies, one at Fort McKinley (now Fort Bonifacio) and the other in Ermita, Manila. Other agencies were subsequently opened at Fort Mills on Corregidor Island and at Fort Stotsenberg (later Clark Field) in Pampanga.
The Philippine Trust Company became the depository of the United States Forces in the Philippines, with depositors from General Douglas MacArthur to the lowest private in the U.S. Army stationed in the Philippines and of the Philippines Scouts.
Throughout its existence, the Bank has maintained a healthy balance in its deposit accounts. Likewise, in the management of available funds, the Bank’s portfolio consists of conservative investments in bonds and other government securities as well as loans, discounts, equity investments, and other advances to industry, commerce, and trade. This method of fund employment has earned for the Bank the reputation of being among the healthiest and most solid financial institutions in the banking system. During the Liberation of Manila in February, 1945, the Philippine Trust Company head office, located in the heart of the business district between Santa Cruz Bridge and Escolta Bridge, Manila, was destroyed along with the most of its records.
New Philtrust Building
In 1950, by arrangement with the Archdiocese of Manila, a five-story fully airconditioned Philippine Trust Company building was built fronting Plaza Goiti (now Plaza Lacson), behind the Santa Cruz Catholic Church. It was one of the first to be built after the war primarily for use and occupancy of a modern bank. The building was occupied by the Philippine Trust Company and also housed the Bankers Association of the Philippines for several years.
At about the same time, the Bank bought its banking services directly to the expanding population by establishing a string of branches, foremost among which were the branch opened in Ermita (corner Isaac Peral and Florida Streets); Paco Branch (Pope Pius), also at Isaac Peral, now United Nations Avenue; and Cubao Branch (EDSA) in Quezon City.
In 1978, several groups approached the Bank’s principal stockholder, the Roman Catholic Archbishop of Manila (RCAM), to express interest in acquiring control of the Bank. His Eminence, Jaime L. Cardinal Sin, considered the matter and decided instead to send Atty. Teodoro R. Padilla to invite Mr. Emillio T. Yap, a prominent business man, to buy the RCAM shares. Atty. Padilla told him that Cardinal Sin would like him to be the buyer because he believed that Mr. Yap could maintain the trust and confidence of the Bank’s clients and would contribute greatly to the growth, stability, and success of the Bank.
All the parties reached an agreement and the group headed by Mr. Emilio T. Yap took over the helm of the Bank on October 17, 1978. At that time, the Bank had total resources of 529.4 million and a capital base of 135.5 million.
These policies were crowned with success and the Bank continued with its steady growth. Responding to the growing interest of the financial and business community, the shares of the Bank were listed in the Manila Stock Exchange and Makati Stock Exchange on February 17, 1988, one of the few banks with publicly traded shares.
The growth of the Bank can be seen in its resources: 1.73 million in 1920, 119.5 million on its 50th Anniversary in 1966, 529.7 million in 1978 when the present management took over, 6.443 billion on its 75th Anniversary in 1991, and now on its 90th Anniversary, 55.072 billion.
Philtrust Contribution to Philippine Progress
The Bank’s continued growth and development have been possible with the wholehearted support of all its constituents, clientele, policy and decision makers, its able officers and staff, and its unswerving loyalty to the high traditions of responsible banking.
The Bank is fully equipped and automated with the most modern and sophisticated bank equipment.
A system of computerization has been installed for banking transactions.
Philtrust Bank has been consistently rated as one of the most outstanding banks in the country, especially for its liquidity position. It is one of the few commercial banks without any local or foreign loan or guaranteed obligations.
Philtrust Bank has not borrowed or availed of any rediscounting facility from the Bangko Sentral ng Pilipinas or other Banks; instead; it has been a lender to the Bangko Sentral ng Pilipinas and other Banks. In addition to loans extended to business and industry, the Bank invests in dollar and peso bonds/bills issued by the Philippine Government and the Bangko Sentral ng Pilipinas.
The Bank’s Head Office is now housed at the Philtrust Bank Building in a sprawling complex on United Nations Avenue corner San Marcelino Street in Manila. The old Head Office Building on Plaza Lacson now houses its Sta. Cruz branch. The Bank now operates 43 branches in Metro Manila and in the provinces, of which 20 are housed in Philtrust Buildings.
The Bank is looking for choice locations for additional branches to increase its market presence and service availability in the major financial, commercial, and population centers of the country, subject to the approval of the monetary authorities concerned.
Philtrust’s View of the Future
The present Board of Directors and operating Officers are as follows: Dr. Emilio T. Yap, Chairman Emeritus; Former Chairman of the Monetary Board and Governor of the Central Bank Dr. Jaime C. Laya, Chairman; Former Supreme Court Associate Justice Emilio A. Gancayco, Vice Chairman and Corporate Counsel; Basilio C. Yap, Vice Chairman; Antonio H. Ozaeta, President; Atty. Eusebio S. Go, Ernesto O. Chan, Conrado S. Janairo, Francisco L. Gochioco, Atty. Ricardo G. Verzosa, Atty. Martin B. Isidro, and Mariano L. Crisostomo, Directors.
With solid performance and sustained growth over the past ninety years, the bank looks forward with keen anticipation to the ensuing years of the 21st century. It will avail of opportunities and meet its challenges with the same dedication and conservative policies that have characterized its corporate life.
Philtrust Bank has done its best to fill the banking needs and credit requirements of commerce, industry, agriculture, and the business sectors of the national economy.
The past ninety years have been fruitful years for Philtrust Bank not only as a banking institution but also as years of dedication to God, country, and fellowmen. Philtrust Bank pledges that it will carry on its tasks in a spirit of peace and brotherhood for the greater glory and prosperity of the Philippines.
