Citystate Bank posts 130% income growth

MANILA, Philippines - Citystate Savings Bank (CSB) continues to enjoy triple digit growth in earnings, posting a growth rate of 129.79 percent in the first quarter of 2009.

The bank, which had P2.372 billion in total resources as of end-March, increased its income last year by 146 percent to P8.04 million from P3.26 million.

Its total gross interest income for the first quarter rose 10 percent to P43.838 million, due largely to the P3.106-million increase in loans and receivables to P35.267 million.

In terms of stability, the bank registered a risk-based capital-adequacy ratio of 54.26 percent as of end-March, much higher than the industry ratio of 17.39 percent and well above the minimum regulatory requirement of 10 percent.

The bank has brought down its non-performing loans ratio to 1.70 percent from 1.78 percent as of end-2008, better than the industry average of 6.64 percent. Its loan to deposit ratio of 93.36 percent was also significantly higher compared with the industry’s 72.20 percent.

Board chairman and president D. Alfred A. Cabangon, in a report to Citystate Bank stockholders, said the bank continued to perform well and became stronger even during challenging times primarily because of its core values of “prudent risk-taking, performance-driven branch growth, and innovative products and services.”

After its recent stockholders’ meeting, the bank approved the declaration of a P0.03-per-share cash dividend, payment of which is subject to approval by the central bank.

Citystate Bank has a network of 24 branches and 26 on-site and 14 off-site automated teller machines strategically located in key cities within Metro Manila and provincial areas.

The bank is a joint venture between a group of Filipino businessmen led by the Fortune Insurance Group and the Citystate Management Group Holdings Pte Ltd., a prominent Singaporean investment holding company.