Sun Savings Bank 1H assets more than double to P311M-A A +A
Sunday, August 18, 2013
TOTAL assets of Sun Savings Bank reached a record level of P311 million as of the first half of 2013, more than double the year-ago level of P140 million.
The bulk of the bank’s assets were in its loan portfolio, which grew more than tenfold to P161 million, from just P15 million a year ago, the bank said in a press statement.
The increase in loan portfolio came mainly from public school teachers’ loans, where collection is assured via automatic salary deductions.
“The net NPL ratio (non-performing loans) of the bank was very low at less than one percent (0.35%),” the bank said.
Despite the increase in its loan portfolio, the bank assured it remained very liquid, as deposits with the Bangko Sentral ng Pilipinas (BSP) and highly marketable securities reached a total of P140 million, compared to P117 million a year ago.
The increase in total assets was funded primarily by the increase in total deposits, which reached a level of P197 million. This level was almost three times higher than the year-ago level of P68 million.
The additional capital of P25 million, paid by the stockholders at the start of the year, also boosted the bank’s resources. At the end of the first half, total stockholders’ equity reached a level of P107 million, compared to the year-ago level of P73 million.
This resulted in a capital adequacy ratio of 62 percent, which is way above the 10 percent required by the BSP and is a key measure of the financial strength and solidity of the bank.
The bank generated profits of P10 million in the first half of 2013, generating an annualized return on equity of 19 percent. The first half profits were significantly better than the year-ago level of P288,000 and the whole year’s profit of P2.9 million.
The bank also opened two other banking offices (OBOs) during the first semester. The first OBO is located at the Gaisano Grand Fiesta Mall in Tabunok, City of Talisay. The second one is positioned around Fuente Osmeña in Cebu City, in the Jesever Building.
These OBOs are designed to primarily market the bank’s deposit and loan products and expand its reach in Cebu.
The bank was also granted authority by the BSP to relocate its head office to Cebu City from Talisay. Upon the re-location of the head office to Cebu City, the bank will convert the Talisay office into a regular branch.
The BSP also granted the bank a license to open a full-service branch in Mandaue City.
Last April 2013, the bank signed up as a member of Bancnet, the country’s largest ATM consortium with over 11,000 machines deployed all over the country and tie-ups with various ATM networks abroad.
By September, the bank expects to roll out its ATM machines and provide electronic banking services.
It was just two years ago, in June 2011, when the new owners and management led by former PNB chairman Francisco Dizon took control of Sun Savings Bank.
Since then, the bank has moved steadily forward, guided by its vision to provide value-for-money banking services to consumers and small and medium-sized businesses.
(Disclosure: Sun Savings president, chairman and chief executive officer Francisco Dizon is one of the directors of Sun.Star Publishing Inc.)
The bank offers three percent per annum for regular savings accounts, the highest in Cebu, and up to five percent per annum for time deposits. It also charges the lowest interest rate for Department of Education teachers’ loans to assist them in meeting their financing needs, such as housing repairs.
For small and medium sized businesses, the bank provides receivables discounting facilities to augment their working capital to generate more sales. (PR)
Published in the Sun.Star Cebu newspaper on August 19, 2013.