Mindanao’s top rural bank grows deposit base
DAVAO City, Philippines—The deposit base of One Network Bank–Mindanao’s largest rural bank network–expanded by 34 percent to P9.9 billion in the first half of the year, the bank’s latest financial report showed.
The year-on-year increase was attributed mainly to the increase in the number of ONB’s branches from 75 to 81, which widened the base for current and savings accounts (Casa), the bank said.
The bank also reported an increase in the number of its onsite and offsite automated teller machines (ATMs) from 93 units to 107. This generated a 26-percent rise in its ATM active cardholder base from 251,000 in June 2010 to 316,000 by the end of June 2011.
“ONB has 525,000 active depositor accounts by the end of the first half of 2011,” ONB president and chief executive officer Alex Buenaventura said.
While deposit volume increased, Buenaventura said there was zero growth in ONB’s earnings. The bank reported a first-semester income of P136 million, or the same as the year-ago level.
“Loan portfolio rose by 20 percent in the first half 2011, but the bulk of which came in the latter part of the second quarter. Therefore, interest income from which has yet to be realized,” Buenaventura said.
Also, he said, profit performance was affected by lower interest rates.
Buenaventura, however, said the bank remained profitable with 27 percent in annualized return on private investment and 2.2 percent in annualized return on assets.
“Growth will come from the expected increase in the number of teachers applying for salary loans, given the 7.5 percent interest rate reduction imposed by a new Department of Eduction circular to all PLIs [participating lending institutions], and in big business loan applications,” Buenaventura said.—Judy Quiros, Inquirer Mindanao
