SUN Savings Bank surged forward in 2018, powered by deposits from the public.
Total deposits grew by 33 percent to exceed the P1-billion mark, as it opened a new banking office in Danao City.
For 2019, the bank is planning to open two more banking offices for its target markets, expanding its network to seven branches.
The bank deployed its deposits into earning assets, principally loans which grew by 30 percenr to reach P1.33 billion, as the bank continued to provide salary, home, auto and SME loans to its target markets—the urban consumer and SMEs.
The result was that net interest income of the bank rose by 36 percent to P96 million in 2018. Net interest income refers to income generated by the bank from its loan portfolio and other earning assets after deducting all interest expenses on its deposits and borrowings. The quality of the bank’s loan portfolio also contributed to the higher interest income, as the non-performing loan (NPL) ratio also went down to only 1.6 percent as compared to 2.7 percent in the prior year.
The bank’s innovative five-year time deposit continued to attract depositors looking for more rewards for their hard-earned funds. The bank offered as much as seven percent per annum interest tax-free, with interest payable one year in advance. The seven percent rate beat the inflation rate of 5.2 percent in 2018, protecting the value of the deposits of its customers. The bank likewise continued to offer a truly financial inclusive ATM savings account, which earns interest of two percent per annum.
Driven by the growth of its deposit base, the total assets of the bank reached a record level of P1.55 billion. Further, the constructive increase in shareholder’s equity to P285 million coming from earnings and fresh capital infusion by shareholders, ensures that the bank has a strong capital foundation.
To give its urban consumer market greater access to its rewarding deposit and loan products, the bank will open a new banking office in the first half of 2019, at the Solinea Towers retail complex on Cardinal Rosales Ave. in the Cebu Business Park. The second banking office to be opened will be located on Plaridel St., across the Carbon Market, where the bank will target lending to the agri-value chain SMEs, such as food processors and traders of agricultural commodities. (PR)