Chinatrust (Philippines) Commercial Bank Corp. registered a 46-percent increase in its mortgage loan portfolio to P2.132 billion in the first six months this year, from P1.459 billion in the same period last year.
Chinatrust retail banking head Anthony T. Robles said the increase in retail mortgage loan portfolio was mainly due to the competitive rates and the innovative features of the loan products.
Interest rate on its housing or business loans can go as low as 3.5 percent per annum.
“We wanted to offer a product with a clear differentiator and our Cashback Mortgage loan product is a perfect example,” Robles added.
Consumers who avail of a mortgage loan under the Cashback Mortgage arrangement can substantially cut their interest expenses as they maintain either savings or current accounts with Chinatrust.
Under this arrangement, the amount placed under deposit is deducted from the aggregate loan amount when determining the interest rate to be charged on the loan. As such, the effective interest rate on housing or business loans can be reduced to as low as 3.5 percent per annum.
The product has been popular with high networth individuals and entrepreneurs who maintain large balances in their working accounts. Instead of unbundling their deposit and loan relationships by seeking the best provider for each product, borrowers can consolidate these otherwise disparate relationships into one bank and achieve substantial savings in the process.
In 2007, Chinatrust reported a net income of P113 million and a return on average equity of 2.33 percent.
Total assets amounted to P19.89 billion. Total loan portfolio reached P12.7 billion while total deposits amounted to P4.1 billion.
Capital adequacy ratio (CAR) was placed at a healthy 27.31 percent. Non-performing loan (NPL) ratio last year was 6.28 percent while NPL cover reached 57 percent.
Chinatrust Philippines is a subsidiary of Chinatrust Commercial Bank (CTCB), the largest and most awarded private commercial bank in Taiwan and one of the 200 biggest banks in the world in terms of capital. — Ted Torres