ONB capital now at commercial-bank level

One Network Bank (ONB), one of the biggest rural banks in the country, has reported growth in income and capital in the first seven months of the year to levels usually seen in commercial banks.

ONB said Friday that its capital hit P2.77 billion by the end of July following fund-raising initiatives intended to increase its buffer to support more lending activities. The amount exceeded the P2.4-billion minimum capital requirement for a commercial bank.

However, ONB said it preferred to remain a rural bank at the moment and had no plans of applying for commercial-bank status.

“Despite the obvious capacity to convert to a commercial bank, ONB decided to retain its status as a frontrunner in the rural banking industry,” the Davao-based bank said in a statement.

ONB, which is partly owned by the Consunji family, also reported that its net income for the first seven months of the year reached P336 million, up 93 percent from P174 million in the same period last year.

The net income for the first seven months of this year already exceeded the P315 million registered for the full year of 2011.

ONB said income growth was fueled largely by expansion in its lending operation.

The bank’s total loan portfolio hit P12.22 billion as of end-July, up 70 percent from P7.19 billion as of the same period last year.