THE total assets of Sun Savings increased by 15 percent to reach a new record level of P2.23 billion at the end of the first quarter of 2022, as compared to the same period last year of only P1.93 billion.
This increase in assets was principally accounted for by the growth in the bank’s loan portfolio which increased by 21 percent to P1.77 billion.
Starting March 1, 2022, the bank started offering five-year term loans to teachers instead of just three years, under the revised DepEd lending guidelines. The result was that teachers could now borrow a new, additional loan of up to P300,000 and still pay the same monthly amortization because of the longer repayment term.
This resulted in a surge in demand for additional loans coming from teachers as they rebuilt their homes which were badly damaged by Typhoon Odette.
To fund this surge in lending to teachers, the bank availed of its P200 million credit line from Landbank and generated new deposits, such that total liabilities grew by 12 percent to P1.86 billion.
As a result of the substantial increase in the bank’s earning assets, the bank’s net interest income from loans and holdings of government securities increased to P32 million from just P18 million. Combined with tight control of the bank’s operating expenses, the bank was able to generate a net income after tax of P10.2 million, resulting in a return on stockholders’ equity of 11 percent per annum.
The quality of the loan portfolio also improved as the Non-Performing Loan ratio declined to 2.63 percent from the year-ago level of 3.34 percent. The bank’s Capital Adequacy Ratio remained solid at a level of 19 percent, as the total stockholders’ equity increased to P373 million from the year-ago level of P355 million.
Given the strong growth of its loan portfolio to teachers, the bank has embarked on a campaign to attract fresh deposits by offering even more rewarding rates to depositors.
Interest rates for five-year time deposits (TDs) have been adjusted to seven percent per annum TAX-FREE, to take into account rising inflation and higher rates on competing government securities and bonds issued by large corporations. Interest rates for one-year TDs have also been increased to 4.05 percent per annum while a new TD with a three-year maturity has an attractive rate of 5.5 percent per annum.
The bank is also gearing up to launch its mobile banking app to the public by the third quarter of 2022, in line with its vision of offering value for money banking services through the use of technology.
The bank is also ramping up its small and medium enterprise (SME) lending program for players in the agri-value chain-like food processors, truckers and traders of agricultural produce and livestock. The bank was recently granted a P50 million credit guarantee facility by Philguarantee to support its thrust in SME lending.
As part of its corporate social responsibility activities, the bank reached out to various barangays badly hit by Typhoon Odette. Through the DepEd teachers in these barangays, the bank was able to identify and distribute relief goods and potable water to more than 2,000 affected families. Supporting the bank in this endeavor were the Rotary Clubs of Makati, Forbes Park and New Manila as well as Seloom Outdoor Furniture and Mr. Renato Tanseco. (PR)