Chinatrust launches new consumer banking products

Chinatrust (Philippines) Commercial Bank Corp. is set to launch a host of new consumer banking products, led by a five-year time deposit, that would help finance its expanding core activities.

Bank officials said they will be re-launching consumer banking products as well as introduce variants of its personal products. There are also new banking products in the pipeline.

The five-year time deposit product, called Innov8, would raise funds for lending to the personal or consumer market the bank said.

Innov8 promises a fixed interest rate of eight percent per annum for a five-year period on a minimum investment of P100,000.

Chinatrust Phils. executive vice president Roland Avante said that a P100,000 investment would grow to P150,000 in five years as long as the principal and the expected annual interest earnings are left untouched for the entire duration.

"It is also tax-exempt if the full term of five years is completed," Avante added.

Bank president Joey Bermudez said that there is still a market for long-term savings products and that depositors are looking for products to park their money during periods of uncertainty.

"We are looking beyond the tough times," Bermudez said.

With 22 percent growth in net income last year and a capital adequacy ratio of 33 percent, the Taiwan-based bank is also prepared to fund the re-launching and re-tooling of its personal and consumer products.

Last year, deposits grew to P12.8 billion while lending growth remained almost even.

Despite the bank’s aggressive lending nature to the consumer and personal market, the quality of its risk asset portfolio remained impressive. Its non-performing loan (NPL) ratio was a mere 4.11 percent, versus the industry average of 14.8.