ONB targets P930-M income in 2014 performance

MANILA, Philippines - One Network Bank (ONB), the largest rural bank in the country, is aspiring to end 2014 just a few million pesos short of P1-billion mark in terms of net operating income this year.

From a net operating income of P709 million in 2013, ONB is looking to close the year with P930 million or 31 percent higher than the previous period.

It will be achieved through a total deposit target of P21.1 billion or 17 percent higher than the P18 billion in 2013.

And robust net loans from P18.7 billion in 2013 to P21.7 billion, up 16 percent.

ONB president and chief executive officer Alex V. Buenaventura said that this year’s outlook remains bullish, similar to the past two year where income growth remained at double-digit levels.

“Main drivers for 2014 growth are the strong demand for salary loans and business loans, and the opening of at least 12 new branches, half of which will be in the new expansion areas of Panay,” Buenaventura said.

The Davao City-based rural bank concluded 2013 with a record net income of P709 million, or 25-percent better than the previous year’s P568 million.

Deposits last year recorded a record growth rate of 27.6 percent coming from ONB’s more than 663,000 account holders across its 98-branch network to P18 billion.

Loans ballooned last year by 25 percent to P18.7 billion from roughly 104,400 borrowers.

“The main driver for this increase is the 20.15-percent surge in the DepEd Salary Loan Program to P12.46 billion, which manifests ONB’s success in making its lending program accessible and convenient to more public school teachers,” Buenaventura pointed out.

Buenaventura said that ONB continue to prove that it has the widest rural banking network in the Philippines with an expanded network of 98 branches and 147 automated teller machines (ATMs).

Likewise, the merger with the former Rural Bank of San Enrique in Iloilo enabled ONB to extend its brand of banking services in five branches in Iloilo City, Dingle, Passi, San Enrique and Jordan in Guimaras plus a banking office in La, Paz, Iloilo City.

The five micro banking offices (MBOs) deployed in rapidly developing barangays of Sasa, Cabantian, Catalunan Grande, Sandawa and Bunawan in Davao City were converted into extension offices.

These extension offices are now able to cater to emergent demands of the communities through acceptance of more deposits.

“Relocation and expansion of branch facilities were done in Midsayap in North Cotabato and Isulan in Sultan Kudarat to provide more spacious interiors and additional parking spaces to make banking experience enjoyable for our fast-growing client base in the countryside,” the bank president added.