At the bank’s annual stockholders meeting Tuesday, iBank chief executive Ramon Y. Sy said the income target roughly takes into consideration the slowdown of the economy.
"But we are optimistic that we will make improvements despite the uncertainties," he said.
The medium-sized commercial bank also reported plans of expanding its branch network this year by at least 10. It is presently negotiating with the Philippine Deposit Insurance Corp. (PDIC) for branches of banks that had been foreclosed by the Bangko Sentral ng Pilipinas (BSP).
Due to the existing branch moratorium imposed by the BSP, banks are forced to acquire existing branch licenses from closed banks, mostly thrift and rural banks.
iBank officials said they are closely monitoring developments based on pronouncements by the BSP that it is seriously lifting the moratorium mainly on a selective basis.
The BSP had earlier said that it is considering lifting the moratorium for banks that have performed exceptionally in the past two to three years, taking in consideration its financial health and its capital adequacy ratio.
The banking industry has been limited to acquiring branches of foreclosed banks at prices ranging from as low as P4.5 million to as high as P8 million.
"If the BSP lifts the moratorium, the prices will drop to more competitive levels," the bank executive said. "And with the weak economy, only profitable and well-managed banks can afford to buy branch licenses."
At the end of 2004, iBank reported assets of P52.4 billion or nearly 20 percent more than the P43.9 billion the year before.
Total loan portfolio went up by 20 percent to P21.7 billion while deposits were 10.2 percent higher, ending 2004 at P39.5 billion from P35.8 billion the year earlier. Earnings per share stood at P1.94 in 2004, 16.9 percent higher than the P1.66 in 2003.
"The quality of our earnings has improved and our expenses remained under control," Sy said.
Total non-performing assets (NPAs) ratio was 8.7 percent of total assets from 11.8 percent the previous year.