ONB resources hit P10 billion

MANILA, Philippines - Industry leader One Network Bank (ONB) has reported total resources hitting P10.3 billion, a record level for the bank and for the country’s rural banking sector.

It was achieved after the first seven months of 2010, or 21 percent higher than the P8.5 billion recorded in the same period in 2009.

“This development is also consistent with the reported continued growth of the country’s banking sector in terms of resources in July, rising by 6.5 percent to P6.4 trillion from the P6.01 trillion recorded in the same period last year,” Alex V. Buenaventura, ONB president said.

Initial data indicate that rural banks contributed P178.2 billion to this increase, registering a four-percent gain from P171.3 billion in the same period last year and marking an annual growth rate of 6.7 percent.

In the first semester of 2010, the largest bank in Mindanao in terms of branch network, reported a 28 percent expansion in net profits to P148 million. Principal drivers of growth were the increase in deposit volume by 26 percent from only P 5.9 billion to P7.4 billion, and the higher treasury income generated due to excess funds from the big amount of deposit increase.

Burnaventura expects more aggressive lending under the DepEd Salary Loan Program and One Business Loan Program.

Likewise, it has opened five new branches bringing its total branch network to 80, all in Mindanao. The five branches are located in Babak, Island Garden City of Samal, Ayala, Zamboanga City, Molave, Zamboanga Del Sur and Oroquieta, Misamis Occidental.

ONB is likewise reported to be expanding its network into the Visayan region within the next two years.