SEEING prospects for further growth in Cebu, a leasing and financial company opened last Friday its first branch here, at the Centro Maximo on D. Jakosalem St., Cebu City.
The Japan-Philippine National Bank (PNB) Leasing and Finance Corp. is a joint venture of PNB, the International Bank of Japan (IBJ) Co. Ltd. and Mizuho Financial Group.
Established in 1997, the joint venture company provides equipment leasing, mortgage loans, receivables discounting, installment paper financing, and foreign currency leasing, among others.
“Opening in Cebu is the realization of the key strategies laid out to grow the business, to create advantages and opportunities, and be closer to the markets we serve. It is no secret that Cebu is a major contributor to the country’s gross national product and gross domestic product,” said PNB chairman Omar Byron Mier in a speech during the branch’s inauguration.
The National Statistical Coordination Board reported that Central Visayas is one of the fastest regional economies, with Cebu as a major driver of growth.
The region posted an 8.7 percent increase in 2007 in terms of gross regional domestic product from 4.6 in 2006.
Japan-PNB Leasing foresees a growing demand for leasing and financing in Cebu this year.
“The strong fundamentals of the economy, especially the Cebu economy, should be a good backdrop to step up our business efforts. Business process outsourcing and call centers needing information technology infrastructure expand our target market beyond the manufacturing and service sectors,” Mier explained.
Interest rates
He said commonly leased equipment include industrial machinery, telecommunications equipment, motor vehicles and transport equipment, printing and packaging machines, hospital and medical equipment, as well as office equipment.
IBJ president Etsuo Okumura admitted that the company is affected by high interest rates imposed by the Bangko Sentral ng Pilipinas, which also raised the cost of funding and borrowing.
Despite the slowdown of the country’s economy, Okumura is optimistic that Japan-PNB Leasing will be able to serve target local companies, including those from the Mactan Economic Zone, and meet its targets for this year.
Japan-PNB Leasing’s net income increased by 19 percent last year compared to 2006.
Based on the latest available industry figures, Mier said Japan-PNB Leasing ranked fourth in terms of total assets.
“We are now in a much better position to challenge the top three big players. We will continuously improve our marketing efforts toward improving our industry ranking,” he said. “Apart from branching out and improve computerization and risk management, we offer new services, like tool operating leases, to diversify our product offerings.”
He said the company will maintain its edge through “creative and flexible product offerings, personalized service and relationship-based marketing approaches.” He added that these strategies will ensure the company’s competitiveness by protecting its yield and improving its spreads. (NRC
