Plantersbank upbeat on hitting P2.5-B loan target

Planters Development Bank is optimistic it will achieve its P2.5-billion loan portfolio target for the year despite a slowdown in lending during the first six months.

Loan portfolio last year almost breached the P19-billion level, of which P15 billion was devoted to the small and medium enterprises (SMEs) market.

Plantersbank is the country’s largest thrift and development bank in terms of lending to the SME market. It is also ranked among the biggest in terms of revenues within the thrift banking sector.

PlantersBank president and chief operating officer Ma. Flordelis F. Aguenza noted that lending was relatively weak in the first semester, influenced by the volatile interest rates.

"It could be seen in the negative impact in the unit investment trust fund (UITF) sector which saw large redemptions or withdrawals," Aguenza said.

But in the second semester, lending is expected to pick up which is generally the trend in SME lending patterns. "In fact, June lending has picked up considerably," she pointed out.

Aguenza said the bank’s salary, housing, and auto lending has been moving in the positive direction. Roughly 30 percent of the loan portfolio is basically consumer loans which is still SME-focused.

Plantersbank, considered the country’s 23rd largest bank in terms of resources in 2005, recorded a net income of P320 million (prior to adjusting to the new international accounting standards or IAS) to an estimated P600 million IAS-adjusted last year.

Its target net earnings this year is P350 million, and would go up to P500 million in 2007.

Total assets stood at almost P36 billion as of end-2005.

Plantersbank has a branch network of 64 nationwide, and is expected to grow to 70 by yearend. Part of its expansion are the relocation of some of its branches, and the integration of the recently-acquired MicroEnterprise Bank (MEB), a microfinance-oriented bank based in Mindanao.