CEBU, Philippines – Aboitiz-led City Savings Bank (CSB) still intends to grow this year its core market, the public school teachers, a top official said.
Eugene Acevedo, chairman of CSB, the thrift banking arm of Union Bank of the Philippines of Aboitiz group, said: "We still expect growth in the teachers' market but we now have to start thinking about what other products and markets we can serve."
In an interview with The FREEMAN late Sunday, Acevedo said the Cebu-based thrift lender still seeks to raise its penetration rate in the teachers' market which currently stands at 50 percent.
"One out of two teachers is our client," Acevedo said. "We can only do so much with the 50 percent penetration already."
The top official noted that over 90 percent of the bank's clients are teachers, estimating that it has a total of around 500,000 customers, comprised of both borrowers (300,000) and depositors (170,000).
This year the bank is planning to open at least five more branches, most of these will be in Luzon and some in Visayas and Mindanao, to reach out to more public school teachers, Acevedo said. No new branch is slated for Cebu this year, he said.
The Aboitiz lender, which celebrates its 50th anniversary this year, ended 2015 with 100 branches nationwide.
Acevedo also revealed the company is launching this year its microfinance and pension loans as part of its diversification strategy. The loan program, according to CSB President and CEO Catalino Abacan, will serve new segments of clients.
It was in 2013 when listed lender Union Bank acquired City Savings, consolidating the Aboitiz's banking ventures.
CSB, which has the highest capitalization levels in the thrift banking sector, currently has total resources of over P62 billion.
Shares of Union Bank were traded at P55.50 per share yesterday. (FREEMAN)