Plantersbank posts 38% net income growth in ’03

After recording a 38-percent growth in its net income last year, Planters Development Bank (Plantersbank) appears confident it would post its highest-ever annual net earnings this year.

In 2003, Plantersbank recorded a net income of P207 million or 38 percent better than the P150 million it recorded in 2002.

This year, the country’s biggest development bank eyes net earnings to reach P270 million. "That should be the highest level of annual earnings for the bank," Plantersbank president and chief operating officer Ma. Flordelis F. Aguenza said.

Plantersbank, known for its advocacy in promoting small and medium enterprises (SME), has total revenues of nearly P30 billion making it the 22nd largest bank in the country’s banking system.

That means it is bigger than half of the 42 commercial banks, and among the biggest in the thrift, savings and development banking system. It recorded a return-on-equity (ROE) of nine percent, better than the 8.4-percent average ROE for the entire commercial banking system.

The bulk of its client base are classified as SMEs numbering nearly 18,000 with a handful of corporates including Lapanday Holdings and the Saranggani Aqua Ventures Inc., both based in Mindanao.

Plantersbank presently has 70 branches, majority of which are located in Luzon.

Total loan portfolio stood at P15.2 billion or 12 percent higher than the previous year while total deposit was recorded at P18 billion at the start of 2004.

Non-performing loan (NPL) ratio to total loan portfolio stood at 9.5 percent. Provisioning for loan loss to total loan portfolio was recorded at three percent while provisioning for NPLs was a safe 29 percent.

Despite the impressive figures and huge capital base, Aguenza assured that the development bank would remain dedicated to the development of the SMEs.

"We will remain focused on the SME sector, and we do not have any plans of acquiring a commercial bank license," the bank official said. "We are not just looking at a decent bottomline, but a wholistic approach to development banking."

Recently, Plantersbank acquired Region Bank (Los Baños Rural Bank Inc.), then the largest rural bank in the country with gross assets worth P1.6 billion. The acquisition expanded Plantersbank’s branch network into Laguna, Batangas and Muntinlupa.

In 2002, it acquired Active Bank and its 31 branches.

Plantersbank is controlled by the group of Amb. Jesus P. Tambunting while its shareholders include several multilateral agencies such as the Asian Development Bank (ADB), Netherlands Development Finance Co. (FMO), Kookmin Bank, the Korea Development Leasing Corp., and the International Finance Corp. (IFC) of the World Bank.