RobinsonsBank posts 21% profit hike in first half

MANILA, Philippines - Robinsons Savings Bank, the banking arm of conglomerate JG Summit Holdings Inc., has reported a net income of P112 million in the first six months of 2010, a 21-percent increase from the P92.66 million earnings in the same period last year.

In a report, RobinsonsBank said the strong income growth was due to higher interest income which vaulted 26 percent from P467.85 million in the first six months of 2009 to P590.11 million in the same period this year.

Gross revenues grew 31.4 percent to P685.62 million in the first semester of 2010, from P521.69 million last year.

“However, bank revenue this year includes revenue from RBS, which was acquired during the second quarter this year,” RobinsonsBank said.

Last May, JG Summit Holdings Inc. acquired the local unit of Royal Bank of Scotland (RBS), including its commercial banking license.

“The acquisition will allow JG Summit to get back into commercial banking, enhance the conglomerate’s financial synergy, and compete aggressively in a way the Gokongwei group is known for,” said Lance Gokongwei, RobinsonsBank chairman.

He added that the streng-thening of their financial muscle would prop up the conglomerate’s aggressive expansion.

“The added franchise value of the commercial banking license will truly make RobinsonsBank the focus of financial synergy within the group,” he said.

RobinsonsBank generated net earnings of P202.8 million last year, 41.2 percent higher than the P143.59 million in 2008. Total resources amounted to P16.89 billion from P12.71 billion in 2008.

Loans expanded to P8.23 billion while deposit liabilities increased to P14.09 billion last year.

RobinsonsBank presently has 53 branches nationwide. With the RBS merger, the new commercial bank will be the 14th largest among commercial banks and 31st among all commercial banks and universal banks combined.