ONB resources reach P25.65 B

MANILA, Philippines - One Network Bank (ONB), the largest rural bank in the country, said its total resources reached P25.65 billion in 2013, up 28.89 percent from the P19.9 billion in the same period a year earlier.

The Mindanao-based rural bank likewise reported a capital base of P3.71 billion as of end 2013, expanding nearly 28 percent from P2.9 billion in 2012.

In fact, the rural bank’s capital base is greater than the minimum capital requirement for commercial banks (KBs) of P2.8 billion, although nearly P2-billion short of the minimum required capital of P5.4 billion for expanded commercial bank otherwise known as universal bank (unibank).

ONB president and chief executive officer Alex V. Buenaventura said the bank achieved a record net operating income of P743 million, an increase of 34 percent over 2012’s P556-million net earnings.

“This robust bottom line is 20-percent better than the projected earnings for the year,” Buenaventura said.

Return on average equity (ROAE) stood a robust 22 percent while return on average assets (ROA) was recorded at 3.25 percent.

Interest earnings on loans grew to P1.67 billion, which is a 13-percent increment from the same period last year. Fee-based income driven among others from service fees on loans also posted a 16.46-percent year-on-year growth to P842 million.

Deposits coming from ONB’s more than 663,000 account holders surged by 28.5 percent to P18 billion last year from the P14 billion in 2012.

These deposits have boosted ONB’s loan portfolio to P18 billion, a 23.2-percent ascent from its year ago level, which supported roughly 104,400 borrowers.

The lending pie is broken down into approximately 70-percent teachers loans, 25-percent personal loans (business loans, fixed loans, loans against time deposits), 3.5-percent agriculture-related, and the remaining for small and medium enterprises (SME).

Even with the aggressive expansion of loan portfolio, tighter monitoring of loans quality reduced the bank’s non-performing loans (NPL) ratio to 1.97 percent.

Risk-based capital adequacy ratio (CAR) was maintained at 18.39 percent, well above the minimum requirement of 10 percent set by the Bangko Sentral ng Pilipinas (BSP).

“Improvement in net income is a result of ONB’s initiative to deliver affordable loan products and banking solutions to unserved and underserved sectors,” the bank chief executive pointed out.

The rural bank continues to remain true to its position as the widest and most modern rural banking network.

ONB has a branch network of 98 located in Mindanao and parts of Western Visayas. It likewise operates 143 onsite and offsite automated teller machines (ATMs), which are all connected to BancNet, the country’s largest electronic banking network.

Of the total number branches, 90 are located in Mindanao, six in Panay, one in Semirara, Antique, and another in Makati. The target is to top 117 by 2016.

Last December, ONB inaugurated a new building for its Midsayap branch in North Cotabato. It boasts of a modern and spacious interior with a parking area that can accommodate more vehicles.

It also inaugurated its first modern building in the Panay Island area for its branch in Dingle, Iloilo.

Construction is in full swing for five other branches, a second branch in Mati, three branches in Iloilo (Barotac Nuevo, Pototan and Estancia) and one in San Jose de Buenavista in Antique. Expansion of branch facilities in existing sites is likewise ongoing in Jordan (Guimaras), San Pedro (Davao City) and Tagum (Davao del Norte).