One Network eyes Visayas expansion
One Network Bank (ONB), one of the top rural banks in the country and a leading player in Mindanao, is expanding into the Visayas as it plans to double its nationwide network to 200 branches in the next three years.
The Consunji group’s banking arm so far has a 102-branch network, thriving in Mindanao over the last 17 years. ONB is now building up its presence in the Visayas, bank president Alex Buenaventura recently told the Inquirer.
The bank breached the 100-branch milestone in the second quarter and now employs 1,481 people. The 101st branch was opened in June in Estancia, a municipality in Iloilo. Apart from the Estancia branch, the bank maintains seven other branches on the island of Panay.
“We are promoting inclusive banking. We are strong in progressive areas where there are no commercial banks,” Buenaventura said.
In Mindanao, the bank has done well, he said. Over the years, Mindanao has benefited from an upswing in the commodity cycle which, in turn, has helped raise the income of farmers.
At the same time, he said, the Davao region is seeing a boom in business process outsourcing alongside improved prospects for tourism.
“There’s a lot of liquidity from agriculture,” Buenaventura said.
ONB now hopes to do in the Visayas what it successfully pulled off in Mindanao. The bank also has plans to enter Luzon, he said.
ONB is likewise diversifying its product offerings. By next year, it plans to engage in credit card lending.
ONB’s capital breached P4 billion in the first semester, putting itself in a competitive footing with commercial banks that are now branching out in the countryside. ONB’s total resources expanded by 19 percent year-on-year to P26.5 billion while capital adequacy ratio to risk assets stood at 17 percent.
Its total loan portfolio as of end-June stood at P20 billion, up by 18 percent year-on-year.
