Likewise, unaudited figures indicate a modest growth in net income, from P1.01 billion in 2001 to P1.085 billion last year. In 2000, the Lucio Tan-run commercial bank earned P801 million.
"We are targeting net earnings at practically the same levels this year," Reynaldo A. Maclang, Allied Bank president, said.
Maclang indicated that the only sad note in its performance last year, was its inability to rid the bank of the bad assets amounting to almost P12 billion. It stood over P15 billion in the second half of 2002.
The key to disposing of the non-performing assets (NPAs) is the issuance of implementing rules and regulations (IRR) for the special purpose vehicle (SPV) law, which was passed recently. In theory, the law allows banks to establish asset management companies (AMCs) to buy the bad assets of the banking system especially the commercial banking system.
The draft IRR is still being discussed by both private and government committees although there are strong indications that it would be passed before the end of the first half of 2003.
The Allied Bank president said that there are several foreign fund managers that have approached them expressing interest in acquiring the bank’s bad assets especially foreclosed properties.
"But neither they nor the bank was making any commitments until the rules of the game or the IRR is passed," he added.
The bank, which was ranked among the top 10 commercial banks in terms of assets, will draw gains this year from its deposits, loans, investments, treasury, overseas remittances, and non-interest income.
Its recent launching of a bancassurance alliance with New York Life Insurance will allow its fee-based income to grow by at least 40 percent, and it is expected to contribute significantly in the coming years.
However, areas of concern remain such as threats of sanctions by the Financial Advisory Task Force (FATF) as the Philippines failed to meet the Feb. 12 deadline for amendments to the Anti-Money Laundering Law.
Allied earned some $500 million from remittances of overseas Filipino workers (OFWs) last year. Earnings from trade-related remittances were unavailable as of presstime.
Allied Bank has branches and working alliances for remittances in seven countries including Bahrain, Guam, Hong Kong, Xiamen, and California.
"We can not be isolated from the world’s financial system," Maclang said.