ONB’s capital hits P4B in end June

MANILA, Philippines - One Network Bank Inc. (ONB), the country’s largest rural bank, has strengthened its capital base to P4 billion in the first six months of 2014, or roughly nine percent higher than the P3.71-billion in 2013.

Total resources expanded by 19 percent to P26.5 billion, as the Davao City-based rural bank opened new branches and automated teller machines (ATMs).

Loan portfolio grew 18 percent to P20 billion, as its borrower base ballooned to 113,700. Deposit portfolio meanwhile reached P17 billion.

Nonperforming loans (NPL) ratio stood at three percent, while capital adequacy ratio (CAR) remained a healthy 17 percent, well above the statutory banking standard of 10 percent set by the Bangko Sentral ng Pilipinas (BSP) or the global standard of eight percent set by the Bank for International Settlement (BIS).

Net income however slipped to P282 million, or a 24-percent drop from the P373 million from previous levels.

If annualized, this earnings level translates to a 24-percent return on average private equity and a two-percent return on average assets.

Interest earnings on loans increased by two percent to P783 million from last year’s figure of P770 million. Fee-based income driven by service fees on loans posted a 14-percent growth to P437 million.

The second quarter of the year saw ONB opened its 100th branch with the opening of Mati Central, the bank’s second branch in the city of Mati, Davao Oriental. ONB’s PeraAgad ATM also surpassed the 150th mark shortly after its migration to the BancNet consortium.

As of end June, the rural bank operates 156 ATMs, recent deployments of which reinforce the bank’s expansion in Panay.

ONB also launched its 101st branch last June 17 in Estancia, a municipality in the province of Iloilo with a thriving economy.

The Estancia branch is ONB’s eight addition to its Panay branches.

The bank has already expanded its brand of banking in Iloilo City, Dingle, Passi, San Enrique, La Paz, Pototan and Jordan in Guimaras Island.

Along with fortifying its business objective to provide modern and convenient banking products and services in the countryside, ONB recently launched its expanded and renovated branches in San Pedro Street in Davao City, Quirino in Panabo, Davao del Norte and Tagum in Compostela Valley.

For the third quarter of the year is geared towards expanding the ONB footprint, with the upcoming launch of branches in the municipalities of Barotac Nuevo in Iloilo and San Jose de Buenavista in Antique. 

An extension office (EO) will also be opened in the new building of Holy Cross of Davao College Inc. in Sta. Ana, Davao City.

An EO can offer full banking services but it is only an attachment to a licensed full branch.

The Holy Cross of Davao College EO will be able to deliver full branch banking services such as deposits, withdrawals, fund transfers, loans, bills payment, remittances, PHIC and SSS contributions and ONB’s Internet banking facility called Business Online Banking.