One Network Bank remains top among RBs

After being ranked by the Philippine Deposit Insurance Corp. (PDIC) as the leader in terms of net income, total assets, gross loans, total deposits, and net worth among the country’s rural banks last year, the One Network Bank (ONB) has done it again this year.

It now reportedly operates the largest branch and automated teller machines (ATMs) among rural banks.

It is the first rural bank to get the nod of the Philippine Clearing House Corp. (PCHC) for its first-ever checking account.

Dealing directly with PCHC, instead of a commercial bank acting as clearing bank, speeds up and expedites clearing of its own checking account. It also unlocks two-thirds of the reserve deposit block with the commecial bank thus allowing ONB to reallocate for lending.

A product of a mega merger between three rural banks based in Mindanao, ONB has 58 branches and four more in the pipeline. Its ATM network already counts to 19 (including three off-site) with a roll-out program of 15 units per month resulting in 83 operating units by end 2005.

When completed, it will make the biggest rural bank the fifth largest member banks of Megalink. Other rural banks with operating ATMs are Banco San Juan which is allied with Bancnet, and Green Bank, RB of Dapitan, and the Rural Bank of Porac, all operating stand-alone units.

"It is a new earnings avenue for the rural bank, and it is growing fast as the market continues to learn that rural banks have ATMs," ONB president Alex V. Buenaventura said, adding that most units are linked through landline circuit, but half are also linked via VSAT.

The ATM network especially those in the farflung rural areas are critical for salary collection of government workers, teachers, etc.

The 58 branches are located in Northern Mindanao, Bukidnon, Misamis Oriental, Southern Mindanao, Davao City, Davao del Norte, Compostela Valley, Davao del Sur, Davao Oriental, North Cotabato, Central Mindanao, Sultan Kudarat, Sarangani, Lanao del Norte, Caraga Region, Agusan del Norte, and Agusan del Sur. Western Mindanao is the next staging area.

Meanwhile, ONB forged alliances with several money transfer firms like Western Union, Moneygram, and commercial banks like Banco de Oro Universal Bank and the Rizal Commercial Banking Corp. (RCBC).

"We are finalizing talks with several other money transfer firms and commercial banks for the same purpose," Buenaventura added.

Initial reports indicate that as of April 2005, ONB’s total resources reached P3.4 billion and net income after tax registered at P57.5 million.

In end 2004, net income was placed at P141 million with return on asset (ROA) of four percent and a liquidity ratio of 19 percent.

Capital adequacy ratio (CAR) grew to 22 percent last year from 20 percent, and a PAR ratio 8.28 percent.

Non-performing assets (NPA) ratio to total loan portfolio remained at 10 percent while non-performing loan (NPL) ratio was stuck at nine percent.