Manila Bank is one of 84 thrift banks accepting deposits and extending loans to small and medium enterprises (SMEs), property and real estate developers, and the middle and consumer market.
The Puyat-led thrift bank plans to open a maximum 10 branches this year after activating 26, and 28 automated teller machines (ATMs), since its reopened in June 1999. It still has 39 un-utilized branch licenses.
By 2009, Manila Bank wants to be ranked among the most profitable thrift banks with a strong hold on its target market of SMEs, property developers and consumer market.
At the end of 2006, total resources stood at P10 billion from P9.03 billion in 2005. Total loan portfolio grew to P4.4 billion and deposits at P5.2 billion.
Manila Bank president Benjamin J. Yambao said that net interest margins remained at a healthy six percent.
Of the total lending activities, the SME sector accounted for 60 percent of the portfolio followed by the property sector for 30 percent. The remaining 10 percent of the loan portfolio went to the consumer market. Growth rate remained at a strong 30 percent year-on-year.
Last year, it disposed of P500 million worth of real and other properties acquired (ROPA).
It is looking to sell another P1.3 billion worth of ROPAs this year through various routes including tapping a special purpose vehicle (SPV), public auction or joint ventures with property developers.
Yambao said that there is a growing demand from the overseas Filipino worker (OFW) and migrant Filipinos (MF) market for places were they can retire or relocate their families. "It is nothing new as most banks are taking advantage of the demand," Yambao added.
The Bangko Sentral ng Pilipinas (BSP) gave the bank a CAMELS rating of four percent while its capital adequacy ratio (CAR) stood at a healthy 29 percent. The BSP wants all banks to keep their CAR above 10 percent.
The bank president said that the target net income target for 2007 was a little over P60 million, roughly the same level as the past two years as focus remained in operating expenses for expansion of it branch network and the accompanying branch personnel.
"There remains a shortage of quality branch managers," he added.