Bancommerce unfazed by the US credit crunch

Cojuangco-led Bank of Commerce (Bancommerce) recently opened its 7th branch at the Ayala Business Park (CBP) to boost its presence in the main commercial district in Cebu.

Amid the issues facing the banking industry in the country, which is affected by the fall of US investment bank—Lehman Brothers, Bank of Commerce remains bullish on its market foothold in the Philippines.

In an interview with Yvette Ybañez Cloma, the Bancommerce business manager for CBP branch, she said that the recent Lehman Brother’s issue has not affected the bank’s operation, specifically in its new branch in CBP.

In fact, she said that the branch, which opened only last August 21 easily gained P200 million deposit-base from 397 clients.

Although, she admitted that at the height of the Lehman Brother’s crash, some depositors have inquired how the bank has been affected. “Once explained to them [clients], they understand. We just have to re-assure them that the money is safe.”

She said all seven branches of Bank of Commerce in Cebu is optimistic to hit the P1 billion deposit-base mark in the next three years. This is because of Cebu’s growing and strong economic landscape.

Only one percent of the total assets of the bank is exposed to the Lehman’s Brothers investments. Thus, clients are assured that the bank remains strong, she said.

According to Cloma, the Bancommerce in CBP recently inked an agreement with 8990 Housing Development Corporation, the developer of Deca Homes projects in Cebu, for payment processes of Deca Homes clients.

The opening of the CBP branch is to provide banking clients easier accessibility to their banking needs, and re-enforce the bank’s commitment to remain strong amid financial challenges.

“We wanted our presence [here] known,” Cloma said.

The bank is also strong in the payroll account, corporate and individual deposit accounts.

Cloma boasts of the bank’s attractive time deposit product, which allow a minimum of P1,000 to get a higher rate.

The P1,000 time deposit account shall earn a rate of 2.5 percent to three percent for an account locked in 60 to 90 days. She said this is designed to young generation earners to get interested in high value deposit products, such as time deposit.

In 2007, the bank registered a P370.8 million revenues a 7.5 percent higher than the previous year. Net income after tax registered at P528.1 million in the same year.

According to Cloma, the bank is also planning to open more branches in Cebu in the couple of months or next year.

The newly opened CBP branch is the 133th branch of Bank of Commerce nationwide.