MANILA, Philippines - RCBC Savings Bank (RSB) expects to jumpstart its automated teller machine (ATM) network expansion this year on the back of a special agreement with Mercury Drug Corp.
Under the deal, RSB will field at least one ATM unit for every Mercury Drug outlet nationwide, the bank’s president and CEO, Rommel Latinazo, said.
“We have already deployed 35 units,” he pointed out, adding that their existing 167 ATMs could balloon to nearly 300 by the end of 2012.
Mercury Drug, the country’s leading pharmaceutical chain, operates over 700 owned or franchised stores nationwide.
In the first three months of 2012, RSB, the thrift bank of the Yuchengco Group, opened four branches – Lapu-Lapu, Cebu; Calapan, Mindoro; Muzon, Bulacan; and Lores, Antipolo – bringing its total branch network to 127.
Latinazo said their target is to open a maximum of 15 branches this year.
At the end of 2011, parent firm Rizal Commercial Banking Corp. (RCBC) reached a total network of 389 branches and 761 ATMs.
Meanwhile, Latinazo said the bank’s net earnings in the first three months of 2012 amounted to P440 million, or nearly doubled from the P234 million in the same period last year.
He attributed the strong performance to extraordinary trading gains realized on the thrift bank’s fixed-income securities.
Net interest income also slightly increased over the previous year’s level as its loan portfolio grew.
Total loan portfolio grew 13 percent to P32 billion mainly due to the growth in core consumer loans such as home mortgage and auto loans.
Total deposits grew percent to P49.4 billion.
Non interest income increased 125 percent, primarily due to trading gains realized. Increases were also noted in service fees, trust income and ATM income.
Consolidated capital adequacy ratio (CAR) stood at a healthy 15.7 percent while Tier 1 CAR was at 15.1 percent.
Latinazo said that the thrift bank is targeting a modest five-percent growth in net earnings for 2012, after hitting a record P1.15 billion in 2011.