Sterling Bank to double branch network

Upstart thrift bank Sterling Bank of Asia plans to double its nationwide branch network to 30 by next year, from the present 15 branches after just 11 months of operations.

“We have applied with the Bangko Sentral ng Pilipinas (BSP) for five new branches and we will apply for 10 more for the rest of the year,” Lamberto R. Villena, Sterling Bank president said in a briefing.

The BSP has liberalized its branch expansion policy nationwide except for a few major cities in Metro Manila which are perceived as overbanked. However, banks can apply for only five branches at a time.

The additional 15 branches will be opened in Metro Manila, Northern and Central Luzon, as well as in the Visayas and Mindanao areas.

In the existing 15 branches, each has one automated teller machine (ATM) onsite or within the branch premise. Villena said the bank is looking for favorable and profitable areas for its offsite ATM units.

“An ATM is a fundamental tool of banks today,” he pointed out. Sterling Bank has allied with BancNet, one of three major ATM operators.

Sterling Bank has also placed its application with the BSP for a trust license as well as foreign currency deposit unit (FCDU) license. It has also applied with VISA International for a debit card that will complement its proposed foreign currency operations.

Sterling Bank’s target markets are the middle market, the small and medium enterprises, and the retail market. It will soon expand to the remittance market.

Its banking license was approved in February this year following the acquisition of the remaining 14 branches of BPI Family Savings Bank. These branches were actually branches of FEB (Far East Bank) Savings Bank which has remained inactive after Bank of the Philippine Islands (BPI) acquired Far East Bank and Trust Co.

Sterling Bank is the newest thrift bank in the country. It is owned by JTKC Equities Inc., Star Equities and Surewell Equities Inc.