One Network Rural Bank cited by BIR

One Network Rural Bank Inc. (ONB) has been ranked number one by the Bureau of Internal Revenue (BIR) Revenue District 113 with its more than P48 million income tax payment.

In its letter, BIR District Officer Evelyn Alegre-Sardido said that "with taxpayers like you there is hope for this country."

The country’s biggest rural bank was ranked fourth over-all among taxpayers after it paid its aggregate tax of roughly P77.4 million covering the first nine months of 2005.

Last year, the Mindanao-based rural bank was ranked second highest taxpayer with an income tax payment of P43.2 million.

"Undoubtedly your tax payment had immensely helped RD 113 not only realize but surpass its collection goal for the year 2004, and hopefully for 2005," Sardido added.

Meanwhile, ONB officials are optimistic that it would surpass its 2005 income targets as it already recorded earnings of P98 million, P6-million short of the full year income in 2004. And that only covers the first six months of the year.

Net income last year reached a record P103.7 million.

ONB president Alex V. Buenaventura revealed that the bank is seeking a foreign currency deposit unit (FCDU) license from the BSP which will allow the rural bank to service dollar deposits.

"We also have a separate application that will allow us foreign exchange (forex) trading or a money-changing license," Buenaventura added.

The FCDU license would allow the bank to start servicing remittances from overseas Filipino workers (OFWs).

It also has existing remittance-based alliances with the Philippine National Bank (PNB), the Rizal Commercial Banking Corp. (RCBC), Western Union, PetNet, MoneyGram, and UniTeller. They are also in talks with two major expanded commercial banks for similar arrangements.

Mindanao accounts for roughly $4-billion in remittance business of the $8.6-billion realized last year.

Earlier this year, the Philippine Deposit Insurance Corp. (PDIC) declared ONB as the leader in terms of net income, total assets, gross loans, total deposits, and net worth among the country’s rural banks last year.

A product of a historic merger between three rural banks based in Mindanao, ONB operates nearly 60 branches, and an ATM network reaching 40 (including eight off-site). – Ted Torres