ONB targets unibank status by 2017

MANILA, Philippines -  One Network Bank (ONB) is planning to apply for an expanded commercial banking license, or universal bank status by 2017. 

ONB is the country’s largest rural bank with a P2.77-billion capital base and 86 branches.

ONB president and chief executive officer Alex V. Buenaventura said that the bank would undertake a capital build-up program to reach the minimum capital required. 

The minimum capital base to apply for a universal bank license is P4.9 billion. 

Buenaventura said the first priority is to internally generate capital before it considers turning to the capital markets. 

“If we can average at least P500 million net earnings per annum in the next five years, plus the support of the board of directors and stakeholders, it is achievable,” he said during the formal launching of its Internet banking facility over the weekend to service its nearly 600,000 depositor base. 

The Philippine Business Bank, the thrift bank of the Yao Group of Companies, is likewise poised to formally bid for a unibank license on or before the end of 2012. The Yao-led conglomerate includes Zest-O Philippines, Zest Air, Semexco Marketing, SMI Development Corp. and Asiawide Refreshing Corp. 

Meanwhile, Buenaventura said ONB would be operating a total of 94 branches on or before the end of 2012. 

After acquiring RB of San Enrique in Iloilo earlier this year, it is awaiting approval by the Bangko Sentral ng Pilipinas (BSP) for the absorption of the Iloilo rural bank, which includes six branches.

It also applied for five new branches under the ONB brand, which will eventually be linked with the six presently under the Iloilo branch. 

It likewise launched ONB MicroBranch program, an accessible micro banking office (MBO) providing modern financial services to micro-depositors through its counters, automated teller machines (ATMs), point-of-sale (POS) terminals, and internet banking.  The first five MBOs are located in the barangays of Sasa, Cabantian, Catalunan Grande, Sandawa and Bunawan, all located in Davao City. 

“We want to fulfill the wish of the BSP to make credit easily accessible,” Buenaventura said. 

At the end of July, it recorded a net income amounting to P336 million, surpassing the P315 million recorded for the whole of 2011. The target is to breach the P500-million mark. 

Total resources grew to P17 billion or a 37-percent hike from last year’s figure of P12.5 billion.  

ONB is also scheduled to sign corresponding bank agreements with several commercial banks, although Buenaventura refused to give names until the formal signing. 

It is also set to put online a total of 1,000 point-of-sale (POS) terminals in the next 12 months, as part of its electronic banking platform to make banking more convenient for the banking public, including the expanding merchant market.