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One Network Bank resources hit P4.2B |
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By Ted P. Torres
The Philippine STAR 03/21/2006 DAVAO CITY – The total resources of One Network Bank (ONB) has reached P4.15 billion last year, or a growth of approximately 38 percent from the P3 billion reported in 2004. That puts the Mindanao-based rural bank (RB) in the leadership position among the country’s rural banking system, and 14th overall among the thrift banks. Net income, however, dropped by 33 percent from P186 million in 2004 to P125 million due mainly to provisioning for probable losses, adjustments to the new accounting standards, higher investments in government securities and bonds, and operating costs of new branches and automatic teller machines (ATMs). Capital adequacy ratio (CAR) remained a healthy 18 percent while its ratio to liabilities to capital ratio was recorded at 489 percent at the end of 2005. "We, however, failed to meet our targets which turned out to be overly optimistic and bullish," ONB president Alex V. Buenaventura said. Total deposits grew to P2.98 billion last year up by 28 percent from the previous year, but off target by 11 percent from its earlier targets. Loan portfolio likewise grew by 28 percent from P2 billion in 2004 to P2.6 billion. Past due ratio nonetheless remained at a healthy 11 percent. Interest income from loans remained the top contributor to revenues, accounting for more than 70 percent of gross income, followed by service charges and fees, commissions and interest on investments. Earning assets to total assets ratio stood at 85 percent while return on assets (ROA) stood at five percent well above the minimum ratio of 1.8 percent required by the Bangko Sentral ng Pilipinas (BSP). Non-performing asset (NPA) ratio stood at 10.3 percent at the end of 2005 while its non-performing loan (NPL) ratio was placed at 8.9 percent. Meanwhile, ONB presently operates 61 branches Mindanao-wide making its the widest branch network even surpassing the commercial banks in the area. By the end of 2006, it expects to open at least four more to bring its network to 65. Of its total branch network, 17 are located in areas that does not have a single bank presence. Another 12 branches are located in areas where no commercial banks operate. Supporting its branch network, is the 37 ATM units integrated with the MegaLink network located in various onsite and offsite locations in Mindanao. In fact, ONB’s Gaisano-Cagayan de Oro offsite ATM was ranked number one within the MegaLink network with most number of transactions of the total 449 MegaLink offsite units nationwide. MegaLink has a total of 1,900 ATM units. Major headway likewise had been achieved in the remittance business. ONB has linked up with various bank and non-banking institutions with domestic and overseas operations. It has alliances with Banco de Oro Universal Bank (BdO), the Philippine National Bank (PNB), Peragram, the Rizal Commercial Banking Corp. (RCBC), PetNet, MoneyGram, and UniTeller. Buenaventura revealed that they are finalizing arrangements with Equitable PCI Bank which will make ONB among the leading banking institution in the remittance business in Mindanao. Mindanao reportedly accounts for roughly $4 billion in remittance business of the $8.6 billion recorded in 2004. One Network Bank is the first rural bank to get the nod of the Philippine Clearing House Corp. (PCHC) for its first-ever checking account. Dealing directly with PCHC, instead of a commercial bank acting as clearing bank, speeds up and expedites clearing of its own checking account. It also unlocks two-thirds of the reserve deposit block with the commercial bank thus allowing ONB to reallocate for lending. ONB is a product of a historic merger between three rural banks based in Mindanao. One Network Rural Bank is a three-way consolidation between Network Rural Bank (Davao del Sur) Inc., the Rural Bank of Panabo (Davao del Norte) Inc., and the Provident Rural Bank of Cotabato (North Cotabato) Inc. |
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