ONB capital hits P2.77B in end July

Manila, Philippines -  One Network Bank (ONB) has exceeded the P2.4-billion minimum capital requisite for commercial banks as it raised its capital base to P2.77 billion as of end July 2012.

The Mindanao-based ONB is the largest rural bank in terms of resources and reach with 86 branches located mainly in Mindanao, but it has a presence in Iloilo and Metro Manila.

Total resources grew to P17 billion or a 37 percent increment from last year’s figure of P12.5 billion. 

At the end of July, it recorded an operating net income after tax of P336 million, surpassing the P315 million recorded for the whole of 2011, and registered a record breaking growth of 93 percent compared to the P174 million in the same period last year.

If annualized, it translates to a 41-percent return on average private equity and a four-percent return on average assets.

This upsurge in net income is mainly attributed to the substantial expansion in net loans and receivables, which grew by 17 percent to P1.83 billion since the onset of 2012, half of which was recorded in the month of July 2012, or a loan portfolio growth of 70 percent or around P5 billion compared to July 2011.

Meanwhile, the P775 million net interest income as of July accounted for 61 percent of the total operating income, while roughly 28 percent or P361 million is composed of fee-based income principally derived from service fees on loans.

This loan expansion was made possible essentially by an increase in both deposits of 40 percent or P14 billion from the P10-billion level in July 2011 and capitalization due to the Bank’s policy of reinvesting all profits.

As of end July 2012, the bank’s pool of depositors reached 575,000.

The Bangko Sentral ng Pilipinas (BSP) approved recently ONB’s application for five more branches in Iloilo. These branches will complement the existing six offices of RB of San Enrique soon to be absorbed by ONB once the merger secures full regulatory approvals.

The Davao City-based rural bank also launched ONB MicroBranch, an accessible micro banking office (MBO) providing modern financial services to micro-depositors through its counters, automated teller machines (ATMs), point-of-sale (POS) terminals, and internet banking.  

ONB is opening within the year five MBOs in the barangays of Sasa, Cabantian, Catalunan Grande, Sandawa, and Bunawan, all located in Davao City.