ONB earnings up 77%

MANILA, Philippines - Mindanao-based rural bank One Network Bank (ONB) has reported an audited net operating income after tax (NIAT) of P556 million, breaching for the first time the P500-million profit mark. 

This represents an increase of 77 percent over the previous year’s NIAT of P315 million.

“The strong gains is mainly attributed to the bank’s interest income on loans and receivables which surged to a level of P1.5 B or a 60-percent climb from end 2011,” Alex V. Buenaventura, ONB president and chief executive officer said in a statement. 

Fee based and other income also jumped by 30 percent from P692 million in 2011 to P900 million. The 2012 net income level reflects a 34-percent return on average private equity (ROE) and three-percent return on average assets (ROA). 

Double-digit growth across all operating parameters was also attained in 2012. 

ONB’s loan portfolio chalked up an increase of 41 percent, or from last year’s P9.9 billion to P14 billion, while deposits grew to P14.1 billion, which is 34-percent higher than the P10.5-billion level in 2011. 

Even with the robust expansion of loan portfolio, the bank continued to maintain a steady 19-percent risk-based capital adequacy ratio (CAR), mainly on the strength of the expansion of its capital base by 23 percent to P3.04 billion, surpassing the previous P2.4-billion minimum capital requirement for commercial bank operations.

“This is a direct result of ONB’s continuing policy of reinvesting all earnings to accelerate its equity growth and allow a vigorous expansion program,” Buenaventura clarified. 

Meanwhile, total resources reached P20.12 billion for a 29-percent improvement over 2011. 

ONB is focused on taking advantage of its augmented countryside branch network and expanded client base to bring its brand of banking to new heights beyond Mindanao. 

With the recent SEC approval of the ONB and Rural Bank of San Enrique Inc. (RBSEI) merger, ONB is now officially operating 96 banking offices, including the five RBSEI branches in Iloilo City, Guimaras, Passi, San Enrique and Dingle, which are now absorbed by ONB as the surviving bank of the merger. The bank also has 135 onsite and offsite automated teller machines (ATMs), most of which are located in countryside Mindanao.