Chinatrust eyes 20% income growth

Chinatrust (Phils.) Commercial Banking Corp. is projecting a 20 percent growth in its income and deposits for 2002.

Given the current economic downturn, Chinatrust vice chairman Thomas K.S. Chen said the bank’s projected growth rate is a conservative estimate.

Although its network in the Philippines is considered small, Chen said the bank is always on the lookout for possibilities of expanding its reach in the country.

"The Philippines is a significant part of our strategic network and we are always open to opportunities that can provide synergy to the bank," Chen said. He said that being backed by its parent firm in Taiwan, Chinatrust has the financial muscle to play heads up with other existing banks in the country.

However, Chinatrust president Joey Bermudez said the bank would rather continue focusing on its corporate clients in which it has carved a niche, rather than doing what every other banks is already engaged in.

"We certainly want to become a dominant player and if there are opportunities to acquire branch locations or to acquire portfolios or institutions, but in getting down to it, has to be consistent with the way we want our business to grow in the country," Bermudez said.

He said there are several offers for Chinatrust to acquire bank branches but these are being carefully evaluated to see if they fit in the bank’s objectives.

Currently, Chinatrust operates 18 branches in selected areas in the country such as the Subic Bay Freeport Zone and at the export processing zone in Cebu. The rest are located in key sites in Metro Manila.

Bermudez said that Chinatrust aims to become one of the country’s top 15 banks in terms of assets within the next five years. Currently, it is ranked in the 30s.

Bermudez added that in terms of profitability, the bank is ahead and already ranks fifth in the banking industry.

Moreover, Chinatrust also has one of the lowest non-performing loans at six percent, a far cry from the industry average of 17.96 percent.

Chinatrust was formerly Access Banking Corp. which was incorporated in 1995. Listed in June 1999, it is into commercial banking and offers traditional trust products and services. – Rocel Felix