SUN Savings celebrated its fifth anniversary in 2016 by achieving outstanding results as its growth rates outperformed that of its peers in the banking industry.
Total assets of the bank reached a record level of P870 million, which was 31 percent higher than the previous year’s level of P665 million. The growth in assets was accounted for primarily by total loans granted, which increased by 53 percent to a level of P575 million.
Salary loans to Department of Education (DepEd) teachers grew significantly as the DepEd hired thousands of new teachers for the new Grade 11 under its K+12 program. Likewise, pre-owned car loan levels doubled as consumer demand for vehicles ratcheted upwards.
In 2016, the bank also started booking home mortgage loans for housing and condo units in the “affordable” P1-million to P3-million price range, where demand was strong. Furthermore, the quality of the bank’s loan portfolio continued to improve in 2016, as the net non-performing loan (NPL) ratio went down to a minimal 0.68 percent from 1.02 percent a year ago.
Total deposits surged by 41 percent to reach a level of P573 million as compared to P407 million the year before.
The growth in deposits was primarily due to the increase in time deposits, as the bank continued to offer rates that rewarded depositors.
In November 2016, the bank introduced the first of its kind, a one-year time deposit that pays interest of 3.5 percent p.a. one year in advance and attracted a very significant amount of deposits in just two months.
The bank’s popular five-year and one month time deposit currently paying monthly interest of five percent p.a. tax-free also increased significantly by 61 percent in 2016.
The level of ATM savings accounts currently paying two percent p.a. also increased by 59 percent compared to a year ago, as depositors enjoyed the advantage of making two withdrawals monthly, free of any charges, in any of the more than 12,000 Bancnet-affiliated ATMs in the country.
Solid foundation
To support the growth in loans and deposits, the bank’s shareholders infused fresh capital of P37.5 million, bringing total shareholders’ equity to a high of P183 million.
This enabled the bank to attain a Capital Adequacy Ratio (CAR) of close to 30, which is three times the BSP minimum required level of 10. This capital level ensures that the bank has the solid foundation on which to grow its loans and deposits.
To service the needs of small and medium enterprises (SMEs), the bank introduced its checking accounts facility in December. The minimum deposit required to open the checking account is as low P1,000. A noteworthy feature of the checking account is the one percent p.a. interest paid to an attached savings account under an automatic transfer arrangement.
In May 2016, the bank expanded further its network of full service banking offices when it opened an extension office in Carcar City. For 2017, Sun Savings expects to sustain its high growth trajectory.(PR)