Wealthbank leverages on used-vehicles loan offer

CEBU, Philippines – Gaisano-led Wealth Development Bank (Wealthbank) leverages on its strength in providing second-hand vehicle loan access to its growing clients nationwide.

This is the announcement made by the bank's president Gregorio Anonas III during the opening of Wealthbank's car fair for used vehicles which opened on October 21 and will end today at the Cebu Business Park (CBP).

According to Anonas, although the bank is also gaining strength in other consumer loan products, such as housing, providing the market with good-quality second-hand vehicle is going to be the competitive edge of the bank not only for its Cebu operation, but also in other branches nationwide.

"We have already established our reputation in this edge. We deal with reputable car dealers, and our five year history on this particular product will boost our strength," said Anonas.

In the next three years, the bank targets to be the major player in providing second-hand vehicle financing nationwide, Anonas said.

Despite the stiff competition in the development bank business, he said the bank aims to hit a conservative projection of 10 percent to 15 percent growth this year.

The growth will be fueled by its much aggressive entry into both consumer and SME (Small and Medium Enterprise) loans.

Now operating with 11 branches in the Visayas and Mindanao, Anonas said the bank, which is majority owned by the Vicsal Development Corporation, the operator of the Metro Gaisano chain of department stores and supermarkets, is set to enter the Luzon market by first quarter of 2011.

Aside from its active expansion plans in the Southern Philippine market, Anonas said the bank is going to enter the Luzon market by opening its first branch in Taguig- Market!Market!, next year.

The bank's major investment this year focused on improving its technology, human resource development, and the expansion of more branches.

Aside from its six branches located in Metro Cebu, Wealthbank has branches in Davao, Cagayan de Oro, Iloilo, and Bohol.

Anonas hinted that aside from investing into improving its technology advantage, developing its people, and opening more branches, he said the bank is also considering other alternative options to look for opportunities to expand, as opportunities becomes available.

He however, did not clarify if the bank is now actively looking for acquisition to beef up the banks assets and reach.

At present, Wealthbank's total resources stand at P1.7 billion, and loan portfolio reaches P1.096 billion.

Between the years 2008 and 2009, the bank strengthened its balance sheet and put in a lot of reserves, which is now 10 percent above industry level.

The Metro Gaisano Group, under its holding company, Vicsal Development Corporation, is the bank's majority shareholder with Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP) as equity partners. (FREEMAN)