ONB accumulates P5.1B in resources
February 27, 2007 | 12:00am
The total resources of One Network Bank (ONB) has reached a record P5.174 billion, or 24.6 percent from the P4.151 billion in 2005, and nearly double the P3-billion in 2004.
The Mindanao-based rural bank (RB) is the largest among its peers in terms of resources. In fact, its 2006 resources is large enough to be ranked among the top 20 thrift banks in the country.
Unaudited net income last year grew to P224 million, or 88 percent higher than the P119 million in 2005. It was a mere P104 million in 2004.
"The early adjustments to the risk-based approach actually improved our position," Alex V. Buenaventura, ONB president said in an earlier interview.
Net loans expanded to P3.278 billion from P2.6 billion in 2005 while deposit liabilities swelled to P3.6 billion in 2006 from P2.98 billion the year before.
Stockholders equity expanded to 904 last year from 704 in 2005 and 608 in 2004.
According to ONB officials, return on private investment expanded to 35 percent from 25 percent in 2005 while return on assets (ROA) grew further to five percent from the three percent in 2005.
Capital adequacy ratio (CAR), a key measure of a bank’s profitability stood at 19 percent last year.
Intermediation ratio is 91 percent last year, better than the 88 percent in 2005. Liquidity ratio was a strong 21 percent in the same period. Expense to gross income ratio dropped to 74 percent from 83 percent in 2005.
Non-performing assets (NPA) ratio was six percent of total loan portfolio last year, better than the 10-percent in 2005, and the nine percent in 2004. Non-performing loan (NPL) ratio stood at a healthy five percent in 2006, from the nine percent in 2005, and eight percent in 2004.
Total branch network reached 64 from 61 in 2005, and 51 in 2004. From just five automated teller machine (ATM) sites in 2004, it exploded to 51 in end December.
Of the 51 ATM machines, 39 are onsite and 12 are offsite. Of the total, 28 are satellite-fed through VSAT. It has an ATM card base of 58,000 individual bank clients.
It is the largest rural bank in terms of branches and ATM network.
ONB is a product of a historic consolidation between three rural banks, all based in Mindanao. ONB is a three-way marriage 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.
It is considered among the more progressive rural banks among the 900 or so in the rural banking system.
ONB linked up with various bank and non-banking institutions with domestic and overseas operations for the remittance business. It has alliances with Banco de Oro Universal Bank (BDO), the Philippine National Bank (PNB), Moneygram/Peragram, the Rizal Commercial Banking Corp. (RCBC), Equitable PCI Bank, PetNet, and UniTeller.
ONB is the first rural bank to get the nod of the Philippine Clearing House Corp. (PCHC) for its first 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.
Recently, it entered into an agreement with the Security Banking Corp. (Security Bank) that would allow both banking institutions to exploit each other’s resources.
Both institutions will realize gains in terms of production and cost savings in operations. The synergy will be a venue to discover new and untapped revenue streams in the areas of consumer banking, remittance, trust operations, foreign currency transactions/trading, and investment products and services for both banks.
It effectively allows the client base of both banking institutions access to a combined 178 branches and 143 ATMs nationwide.
It will allow the rural bank and the commercial bank to collaborate in terms of cash in vault (CIV) management, correspondent banking relationship (disbursement and collections), and facilitation of remittance pay-outs and services for MasterCard Electronic (loan releases and collection of amortization payments).
The Mindanao-based rural bank (RB) is the largest among its peers in terms of resources. In fact, its 2006 resources is large enough to be ranked among the top 20 thrift banks in the country.
Unaudited net income last year grew to P224 million, or 88 percent higher than the P119 million in 2005. It was a mere P104 million in 2004.
"The early adjustments to the risk-based approach actually improved our position," Alex V. Buenaventura, ONB president said in an earlier interview.
Net loans expanded to P3.278 billion from P2.6 billion in 2005 while deposit liabilities swelled to P3.6 billion in 2006 from P2.98 billion the year before.
Stockholders equity expanded to 904 last year from 704 in 2005 and 608 in 2004.
According to ONB officials, return on private investment expanded to 35 percent from 25 percent in 2005 while return on assets (ROA) grew further to five percent from the three percent in 2005.
Capital adequacy ratio (CAR), a key measure of a bank’s profitability stood at 19 percent last year.
Intermediation ratio is 91 percent last year, better than the 88 percent in 2005. Liquidity ratio was a strong 21 percent in the same period. Expense to gross income ratio dropped to 74 percent from 83 percent in 2005.
Non-performing assets (NPA) ratio was six percent of total loan portfolio last year, better than the 10-percent in 2005, and the nine percent in 2004. Non-performing loan (NPL) ratio stood at a healthy five percent in 2006, from the nine percent in 2005, and eight percent in 2004.
Total branch network reached 64 from 61 in 2005, and 51 in 2004. From just five automated teller machine (ATM) sites in 2004, it exploded to 51 in end December.
Of the 51 ATM machines, 39 are onsite and 12 are offsite. Of the total, 28 are satellite-fed through VSAT. It has an ATM card base of 58,000 individual bank clients.
It is the largest rural bank in terms of branches and ATM network.
ONB is a product of a historic consolidation between three rural banks, all based in Mindanao. ONB is a three-way marriage 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.
It is considered among the more progressive rural banks among the 900 or so in the rural banking system.
ONB linked up with various bank and non-banking institutions with domestic and overseas operations for the remittance business. It has alliances with Banco de Oro Universal Bank (BDO), the Philippine National Bank (PNB), Moneygram/Peragram, the Rizal Commercial Banking Corp. (RCBC), Equitable PCI Bank, PetNet, and UniTeller.
ONB is the first rural bank to get the nod of the Philippine Clearing House Corp. (PCHC) for its first 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.
Recently, it entered into an agreement with the Security Banking Corp. (Security Bank) that would allow both banking institutions to exploit each other’s resources.
Both institutions will realize gains in terms of production and cost savings in operations. The synergy will be a venue to discover new and untapped revenue streams in the areas of consumer banking, remittance, trust operations, foreign currency transactions/trading, and investment products and services for both banks.
It effectively allows the client base of both banking institutions access to a combined 178 branches and 143 ATMs nationwide.
It will allow the rural bank and the commercial bank to collaborate in terms of cash in vault (CIV) management, correspondent banking relationship (disbursement and collections), and facilitation of remittance pay-outs and services for MasterCard Electronic (loan releases and collection of amortization payments).
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