MANILA, Philippines - The country’s largest rural bank is eyeing to put-up another 10 branches, as well as a 30-percent increase in net income for 2011.
One Network Bank Inc. (ONB), which already operates 81 branches throughout Mindanao, has already applied for five branch licenses with the aspiration of opening the same within the first semester of 2011.
ONB president Alex V. Buenaventura said that they would open one branch in Metro Manila and another four in Mindanao.
However, the next five branch applications will be utilized for its expansion network in the Visayas.
“There are a lot of unbanked and underbanked areas in the Visayas, which is our market,” Buenaventura said Tuesday night.
The rural bank president likewise revealed that ONB is studying the possibility of opening a trust department. It would be the first rural bank to apply for a trust license, since the Bangko Sentral ng Pilipinas (BSP) relaxed regulations for the limited banking function.
A little over 10 commercial banks and less than five thrift banks, operate a licensed trust department.
“We would once more be at par with the commercial banks operating in areas where we are also present,” Buenaventura explained.
Meanwhile, ONB reported that its 2010 net income grew by 19 percent to P278 million, resulting in a return on equity (ROE) of 28 percent and a return on assets of three percent.
Deposit liabilities rose by 37 percent to P9.4 bilion from P6.8 billion, while total loan portfolio grew by three percent to P6 billion from P5.8 billion.
Total resources ballooned by 28 percent to P11.8 billion.
Non-performing loans (NPLs) ratio remained benign to just a mere five percent which was actually the same level in 2009.
ONB operates 105 automated teller machine (ATM), again the largest among rural banks, and a board seat member of MegaLink.