Chinatrust to open 2 more branches in Cebu

Foreign-owned Chinatrust (Philippines) Commercial Bank Corporation is expanding its reach in Cebu and is poised to open two more branches this year.

Currently, the bank is waiting for the Bangko Sentral Ng Pilipinas (BSP)' s approval to buy two bank licenses in Mandaue City and downtown area in Cebu to pursue its plan to add two more branches here.

"Hopefully within the third quarter of this year, we can already open another branch," said vice president Harry Y. Uy.

He said the market in Cebu, especially in consumer banking, offers a promising outlook, thus the bank's board of trustees easily approved the planned opening of two more branches.

The Taiwan-based ChinaTrust is strengthening its niche in the salary loan feature, banking on the growing number of potential borrowers who are employed by established corporations.

However, Uy said the bank has also opened its arms to corporate lending especially for feasible projects, such as the newly completed commercial complex The Forum. Uy said some of The Forum's financial requirement was sourced out from Chinatrust.

The Forum developer Jo Realty Corporation got some of its financial resources in building the P30 million The Forum leisure and commercial complex from Chinatrust's corporate loan product.

"We are open for huge corporate loans, but we are very choosy and conservative in selecting our clients," Uy said.

On the other hand, in an earlier interview with the bank's first vice president for sales and distribution Rafael Z. Sison, Jr., he said that Chinatrust has already expressed its interest to buy some licenses of Bank of the Philippine Island (BPI)'s acquired Far East Bank, and unused operation licenses of Global Bank.

Sison said opening more branches in the regional areas is very important for its growth because the company is pushing for its retail banking product in salary loans to employees, as well as teachers.

While other banks are also offering this kind of loan product, Chinatrust president Joey A. Bermuldez expressed confidence that ChinaTrust can sustain its leadership in the salary loan access as it has in place infrastructure, and proven mechanics.

"We have the competitive advantage, our infrastructure, mechanics and technology are in placed. We made it easy for the employers to implement the salary loan for their personnel," Bermuldez said.

The bank's growth in Cebu is primarily driven by the robust growth in its salary loan market.

To date, the bank has a total of P3 billion to P4 billion loan portfolio, large amount of this portfolio is utilized in the salary loan feature.

Aside from its bulk employee market, ChinaTrust is also serving thousands of Filipino Overseas Workers (OFWs) based in Taiwan, and the local Chinese traders. Its 18 branches located across the urban areas in the country, are now offering salary loan to over 700 companies, including Nokia Philippines, among others.

Although it is owned by Taiwan-based ChinaTrust banking institution, the Philippine operation is locally incorporated, and operates as a subsidiary of ChinaTrust in Taipei, Taiwan.