ONB earnings surpass 2012 level

MANILA, Philippines - After just nine months into 2013, One Network Bank (ONB) has recorded a net income of P575 million, and in the process, surpassing its 2012 full year income of P556 million.

ONB is the country’s largest rural bank in terms of resources, with branches located in Mindanao and the Visayas.

The first nine-month income level is also 20.29 percent more compared to the P478 million in the same period in 2012.

Return on average private equity stood at a hefty 38 percent while return on average assets at a healthy four percent.

ONB president and chief executive officer Alex V. Buenaventura said the strong income growth is attributed to the bank’s aggressive stance toward making its affordable deposit and loan products available to more un-served and underserved sectors.

It is also the high earnings rate that boosted the bank’s capital base to P3.58 billion, supported by its continued policy of reinvesting profits.

Deposit portfolio ballooned by 22 percent to P17 billion, fueled mainly by the 680,000 strong depositor base.

This, in turn, fed ONB’s loan portfolio standing at a robust P17 billion or 21 percent higher than the P14 billion at the end of 2012. The Davao City-based rural bank’s borrowers base reaching 103,000.

Non-performing loan (NPL) ratio fell further to 1.98 percent.

Capital adequacy ratio (CAR) likewise stood at a healthy 18.65 percent.

The bank also closed the third quarter with total resources of P23 billion, a 48-percent level from the same period last year.

Early this month, ONB further expanded its reach with the inauguration of its new branch building in Dingle, Iloilo. It marks the first time the ONB standard branch building was established in the island of Panay, providing locals with modern and affordable banking platforms and solutions, including the facility of a BancNet ATM (automated teller machine).

The inauguration of the Dingle branch also paves the way for more ONB branches, with an eye for La Paz, Iloilo City, Pototan, Barotac Nuevo and San Jose de Buenavista in Antique.

Last April, ONB joined BancNet in a bid to access other services of the electronic banking network.

ONB has 142 onsite and offsite ATM through its PeraAgad ATM cardholders, who can now evjoy transactions at any BancNet, MegaLink and ExpressNet ATMs anywhere in the Philippines.

PeraAgad ATM cardholders can do bills payment, payment for purchases in stores and even those made online. With the BancNet alliance, cardholders can also utilize point-of-sale (POS) terminals, phone and mobile banking, and personal Internet banking.