With the license, Citystate Bank can participate in the electronic auction of government securities with other banks and non-bank financial institutions through the automated debt auction process system (ADAPS).
"This will further enhance our product line geared towards our mission of giving full value and service to our clients. As an institution, we will pursue this mission regardless of political situations," D. Alfred A. Cabangon, Citystate Bank president said in a statement.
Government securities are in the form of Treasury bills (T-bills) and Treasury bonds (T-bonds). The BTr sells these securities to the investing public through a network of licensed dealers.
In succession, the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) separately approved the thrift bank’s plan to enter into the government bond market.
Earlier, the bank raised capital for the acquistion or opening of an additional 38 branches within the next three years.
It has an existing 12 branch network mostly in Metro Manila. That should bring the total network to 50 by 2007, majority of the new branches would be located outside Metro Manila.
Citystate Bank is looking at a modest 10 to 30 percent growth in net earnings this year under the three-year program.
The prudent outlook is backed by its 5.68 percent return on equity (ROE) rate and a capital adequacy ratio (CAR) of a whopping 53 percent. The BSP wants all banks to have at least a 10-percent ratio.
It has a negligible three percent non-performing loan (NPL) ratio to total loan portfolio with an asset base of P1.3 billion. – TPT