Wednesday, December 19, 2007 Newly opened bank eyes more branches in Cebu, southern RP
COMMERCIAL bank Asia United Bank (AUB) is eyeing an expansion in its banking chain in southern Philippines given the bullishness of the banking industry in the area, particularly in Cebu.
AUB senior vice president for treasury Antonio Agcaoili Jr. said the bank is mulling to add another branch near the Taboan Public Market in Cebu City in the first quarter of next year.
The company is also targeting to double its existing outlets by opening four branches per year or 72 branches by the end of 2009.
“A lot of wealth is consolidated in certain provincial areas. We have been successful in identifying the wealthy people in the south, especially in Cebu,” Agcaoili said, adding that the province has been perceived as an important market for the bank’s expansion programs.
He also said AUB will support the growth of its branch networks in Iloilo City, Dumaguete City, Zamboanga City and Bacolod City as these are also key areas for growth.
“Southern Philippines is, indeed, promising for us,” Agcaoili said in an interview.
Prospects
He said that while the company has high prospects in Metro Manila, the Bangko Sentral ng Pilipinas moratorium on the establishments of new banks has prevented them to develop branch networks in the area compared to southern Philippines which is not covered by the moratorium.
Agcaoili said with the bullishness displayed by AUB in the Philippine banking industry, he is optimistic the company will be able to grow its bond portfolio, particularly in the treasury business, where the bank is “active.”
Salary loans
He added that the bank also has an “expertise” in providing salary loans.
Citing official records, he said AUB’s salary loan portfolio has now increased to P3 billion to date.
Earlier this month, AUB opened its third branch in Cebu and its 40th branch nationwide located at the second floor of the Dyno Building at the corner of J. Llorente and Juana Osmeña Sts., Cebu City. (MMM)
