ONB 9-month income reaches P575M-A A +A
Monday, November 4, 2013
HOMEGROWN rural bank One Network Bank (ONB) has continued to be on pace
with its growth objectives as it posted a net operating after-tax income of P575 million in the first nine months of 2013, surpassing its end 2012 income of P556 million.
The net income level, which is 20 percent greater than the year-ago level of P478 million, makes a return on average private equity of 38 percent and return on average assets of 4 percent.
It is also this high income rate that boosted the bank's capital base to P3.58 billion as of end September 2013, supported by its continued policy of reinvesting profits.
The income growth is attributed to the bank’s aggressive stance toward making its affordable deposit and loan products available to more unserved and underserved sectors. ONB's 680,000 account holders in its 97 branches have combined to bring ONB deposits up to P17 billion, increasing 22 percent from its year-ago level. These deposits have driven loans growth 28 percent to a level exceeding P 17 billion, while reaching 103,000 borrowers.
Tighter monitoring of loans quality reduced the bank’s non-performing loans (NPL) ratio to 1.98 percent. Its risk based capital adequacy ratio stood at 18.65 percent, well above the BSP requirement of 10 percent.
The bank also closed the third quarter with total resources of P23 billion, a 48percent ascent from the same period last year.
ONB further expanded its reach with the inauguration of its new branch building in Dingle, Iloilo, a municipality with increasing business activity and last October 5, 2013. This inaugural marks the first ONB standard branch building to be established in the island of Panay, providing locals with modern and affordable banking platforms and solutions, including the facility of a BancNet ATM.
Last April, a memorandum of agreement was signed between ONB and BancNet, the country's largest electronic banking network.
With the affiliation of ONB's 142 onsite and offsite ATMs with BancNet,
PeraAgad ATM cardholders can now enjoy transactions at any BancNet, MegaLink and ExpressNet automated teller machines (ATMs) in the country and avail of other BancNet, provided services such as bills payment, payment for purchases in stores and even those made online using their ATM cards. The BancNet connection also enables ONB to expand into other electronic banking systems such as POS terminals, phone and mobile banking and personal Internet banking.
The inauguration of the new Dingle branch paves the way for more ONB branches in Panay. Even as ONB acquired branches in Iloilo City, Passi City, San Enrique and Jordan in Guimaras Island with its merger with RB of San Enrique, construction is in full swing for branches in La Paz, Iloilo City, Pototan, Barotac Nuevo and San Jose de Buenavista in Antique. A major renovation is also in progress in Jordan branch.
Published in the Sun.Star Davao newspaper on November 05, 2013.