MANILA, Philippines - Earnings of government-owned Philippine Postal Savings Bank (Postbank) expanded nine percent last year as the bank continued to mount fresh initiatives to sustain its remarkable growth in recent years.
Cesar Sarino, president and CEO of Postbank, said 2015 was another milestone after the state-run bank’s net income reached P134 million or P10 million higher from P124 million in 2014.
The bank booked a double-digit 12 percent rise in its loan portfolio to P6.4 billion last year from P5.7 billion in 2014.
“We take pride not only in achieving healthy growth but more importantly in achieving our goals to serve the unbanked and underserved, and in the process help alleviate poverty, and push for inclusive growth and financial inclusion,” Sarino said.
Sarino said Postbank saw exponential growth in net income, and generated threefold increase in loans amid challenges and stiff competition from 2011 to 2014.
The bank’s total resources jumped 33 percent to P12 billion last year from P9 billion in 2014 making it the country’s 15th largest thrift bank in terms of assets.
Postbank executive vice president Higinio Fabian credits the bank’s sound financial performance to effective cost management and aggressive income generation from various sources.
Fabian pointed out loans to micro, small, and medium enterprises (MSMEs) increased P302 million, while loans to private companies rose by more than P500 million.
The bank’s revenues, he explained, amounted to P790 million.
Apart from lending to MSMEs, Postbank beefed up its microfinance operations and extended its services to the underserved sector – micro-entrepreneurs, farmers, fisherfolks, and those in the transport sector.
With 25 branches and six micro-banking offices nationwide Postbank hopes to make banking services friendlier to clients with installation of more ATMs in off-site locations to expand its network.
Sarino said Postbank hopes to fully flex its muscle amid competition this year by reaching out to those who have no access to credit, and providing retail lending in underserved municipalities.
“We shall continue to deliver our mandate and be an active player in alleviating poverty, reducing unemployment, improving basic service delivery and sustaining the environment. We are ready to face competition from the expected influx of multinational banking institutions,” Sarino added.
Postbank, a subsidiary of Philippine Postal Corp., is a government thrift bank created with a special mission to encourage savings and provide access to financial credit to the unbanked areas of the country.
Postbank aims to make available, especially to the rural sector, much needed capital to spur economic development in the countryside. It also aims to encourage savings among rural families, inculcating the value of thrift into the Filipino psyche, especially among the young people.