Robinsons Bank hikes loan portfolio by 33%

MANILA, Philippines — Robinsons Bank Corp. is beefing up its loan portfolio by as much as 33 percent this year as it further expands its coverage nationwide.

The bank owned by taipan John Gokongwei intends to increase its loan book to P90.9 billion this year or P22.49 billion higher than last year’s P68.41 billion through increased lending activities.

The projected growth in loan portfolio is almost twice the 18.7 percent booked by Robinsons Bank last year.

Robinsons Bank also plans to expand its deposit base by 40.6 percent to P133.6 billion this year.  This will be driven by  higher demand deposits and the  issuance of more long-term negotiable certificates of deposits.

The Gokongwei-led bank is opening 16 new branches and installing 44 new automated teller machines to augment its existing network.

It intends to capitalize on the country’s strong economic potential by investing in the growing corporate, middle and consumer markets.

“The bank will continue increasing its loan and investment securities portfolio, by strengthening market presence, and by capitalizing on its recently-launched products and future products and services,” it said.

Robinsons Bank is in the final stage of its Roadmap 2020 launched in 2015 as well as digital transformation initiatives to provide better customer experience.

It launched numerous products and services that will augment its core businesses, including the Direct2Bank PesoNet and the Direct2Bank.  This allows the instant transfer of funds to the beneficiary’s bank account.

In May last year, the bank launched the Robinsons Bank Credit Card in a bid to provide financial flexibility to its customers as well as its bancassurance business through a strategic partnership with Pru Life UK.

Robinsons Bank ventured into the merchant acquiring space and launched its basic deposit account through Simple Savings as part of initiatives to tap the unbanked and the underserved segment.

The bank’s net income amounted to P317.11 million last year or P9.73 million higher than last year’s P307.39 million. Net interest income grew 19.8 to P3.57 billion, while net fees and commission income more than doubled to P264.68 million.

Other income, on the other hand, fell 24 percent to P268.7 million.  Expenses rose 17.8 percent to P3.66 billion.

Robinsons Bank, 60 percent owned by JG Summit Capital Services Corp. and 40 percent by Robinsons Retail Holdings Inc., acquired Albay-based Legazpi Savings Bank Inc. in December 2012.

It hiked its authorized capital stock to P27 billion from P15 billion to facilitate the issuance of new shares to existing shareholders through a stock rights offer, an initial public offering and the entry of a new strategic partner.