ONB income up 42% in H1

MANILA, Philippines - One Network Bank (ONB) has reported a 42.3-percent increase in net income in the first six months of 2013 to P373 million from P262 million in the same period in 2012.

If annualized, this translates to a 37-percent return on average equity (ROE) and a four-percent return on average assets (ROA).

“Improvement in the net income level is attributed to the 39-percent increment in interest earnings on loans to P770 million from a year ago, coupled with the 78-percent surge in non-interest income to P437 million. The bank’s first semester bottom line is 36 percent higher than the projected earnings for the same period,” Alex V. Buenaventura, ONB president and chief executive officer, said.

The largest rural bank in terms of branch network also hiked its loan portfolio by 44 percent year-on-year to P17 billion through servicing around 102,000 borrowers.

Loan expansion was supported by its deposit base, which grew by 32 percent to P16 billion while nonperforming loans (NPL) ratio dropped to just two percent.

ONB exhibited financial strength with its risk-based capital adequacy ratio (CAR) of 19 percent, which is above the 10-percent minimum requirement of the Bangko Sentral ng Pilipinas.

Total resources reached P22.4 billion, up 40 percent from P16 billion recorded in the same period last year.

Equity base likewise grew to P3.4 billion.

“Over the years, ONB has positioned itself as the country’s widest and most modern rural banking network that has made servicing the unbanked and underbanked sectors as its prime concern,” Buenaventura said in a statement.

The bank further expanded its reach with five new branches in Iloilo and in Guimaras as well as a branch in Semirara in Antique to cater to the financial needs of local residents and businesses in these areas with a small accounts-friendly range of deposits, loans and e-banking services.

ONB has also recently inaugurated its new branch building in Isulan in the province of Sultan Kudarat and is expanding its branches in San Pedro Street in Davao City, Panabo and Tagum in Davao del Norte and Midsayap in North Cotabato.

As of end June 2013, ONB operates with 97 branches, 137 onsite and offsite automated teller machines (ATMs), aside from various e-banking platforms.

It is presently pilot testing its Internet banking facilities.

The Mindanao-based rural bank transferred to the BancNet network for ATMs as well as other electronic banking services offered by the electronic outsourcing consortium.