Allied Bank reports 12.2% deposit growth

Allied Bank Corp.’s total resources grew by 9.16 percent to P118.619 billion in the first nine months of the year from P108.668 billion in the same period last year as the bank’s deposit base recorded a double digit expansion during the review period.

According to Allied Bank president Reynaldo Maclang, the bank’s total deposits expanded by 12.2 percent due to an increase in customer base.

"Deposits grew through the bank’s continued branch expansion, extensive marketing strategies, and development of new and innovative products and services that cater to the needs of its depositors," Maclang said yesterday.

Allied Bank’s total loans went up by 3.17 percent even as the Bangko Sentral ng Pilipinas (BSP) reported an overall drop in commercial banks’ outstanding loans at the start of the third quarter.

Allied Bank’s non-performing loan ratio (NPL) to total loans stood at 17.80 percent in the third quarter, or a substantial improvement from the previous quarter’s 19.71 percent.

The industry’s average NPL stood at 18 percent during the review period.

Meanwhile, for the first eight months of the year, Maclang said the bank’s profit performance improved by more than 80 percent from its year ago level.

With the first eight-month results on new deposit and loan products, Maclang expressed confidence that Allied Bank could hit its yearend net profit target of more than P1 billion.

Net income in 2001 reached more than P1 billion, or 25 percent better than the P801 million it registered in 2000.

The Lucio Tan-controlled bank decided not to undertake its planned tier 2 capital buildup worth $50 million.

"There is no hurry. We have a capital adequacy ratio of 15 percent while the planned capital build-up when implemented would increase our capital base of P15 billion," Maclang said.