The increase in resources was funded by an eight-percent growth in deposits to P121 billion from P112 billion "due to intensified deposit-generation efforts of the bank’s strategically-located branches."
"The deposit-driven growth in resources was efficiently utilized in earning assets. Fee-based income likewise improved due to treasury-related businesses," Allied Bank president Reynaldo A. Maclang said in a statement.
The bank’s income before tax of P662 million also increased by 29 percent from P512 million a year earlier.
In 2004, full year net income was recorded at P1.325 billion. In 2005, the profit target was placed at a conservative P1.4 billion.
The Lucio Tan-controlled commercial bank manages a total branch network of 285 branches – 283 branches nationwide and one each in Guam and Bahrain.
It operates an automated teller machine network of 164 ATMs as of end-2004. The total number of ATMs is expected to increase this year due to the acquisition of 150 new units to attain a higher level of accessibility to the banking public. It will replace aging units as well as for new onsite and offsite areas.
"We are upgrading the entire ATM network of newer and state-of-the-art acquirer services machines that can not only receive payments of bills, but transfer funds, basic withdrawals, reload prepaid phones, inquire account balances, and other services required by the banking public," said Antonio H. Santos, Allied Bank senior assistant vice president.
Funding for the acquisition of new ATMs and expansion of its branch network was funded by its successful launch of its $50-million Tier 2 capital build up last year.
Allied Bank recently ventured into microfinance, making it the first commercial bank to deal directly with microentrepreneurs, as well as microfinance-oriented institutions.