ONB sets P400-M capex for branch expansion

MANILA, Philippines - The One Network Bank (A Rural Bank), otherwise known as ONB, has drawn up a P400-million capital expenditure (capex) program to open 30 branches and relocate another four branches by 2016.

ONB is the country’s largest rural bank with a P4-billion capital base, a branch network of 102, and 150 automated teller machines (ATMs) at the start of 2014.

“Even with the recent launch of the ONB’s 100th branch in Mati City, Davao Oriental and its 102nd office in the municipality of Estancia in Iloilo, plans to further expand the bank’s branch network to 132 by 2016 are already in the works,” Alex V. Buenaventura, ONB president and chief executive officer, said.

The main bulk of the P400-million expenditure will be primarily used to support the construction of 30 new branches in Mindanao and in Panay.

“Once in place, these new branches are deemed to strengthen ONB’s premier position in the nation’s countryside financial infrastructure with its extended reach,” Buenaventura added.

The bank kicks off its expansion program this month with the opening of its 16th office in Davao City located in the new building of Holy Cross of Davao College, an infrastructure project financed by the bank.

ONB branches in Barotac Nuevo, Iloilo and San Jose de Buenavista, Antique – the bank’s eighth Iloilo branch and its second in Antique, respectively – will also commence operations this month, bringing the count to 105 banking offices.

Still another portion of the capex will result in the establishment of a third branch in General Santos City (Brgy. Malakas) and a third branch in Antique (Culasi) as well as banking offices in Mangagoy and Tandag in Surigao del Sur province.

Another 10 provincial sites presently under site acquisition process, including two in Cotabato; three in South Cotabato; one in Davao del Sur; one in Compostela Valley; and three in Iloilo.

Furthermore, the allocation will also carry out branching in 13 more areas where branching has been approved but with no identified branch site yet.

“The establishment of these 30 new branches in Mindanao and Panay – the three offices opening this month, four branches to start construction soon, 10 pending completion of site acquisition, and 13 branches for site location – will enable ONB to expand its branch network to 132 in to years,” the bank’s chief executive said.

The bank will also be allocating a fifth of capex to relocate and expand its four branches in Dipolog City, Piapi and Bunawan in Davao City, and Passi in Iloilo.

Completion of these renovation projects will ensure consistency of the modern look and feel among all ONB branches with interiors at par with commercial banks.

“ONB continues to successfully articulate its vision to be the country’s widest and most modern rural banking network. The bank will leverage on its increased number of branch counters to deliver its range of modern banking services and platforms to addresses the needs of its clientele, living up to its new slogan, Tuloy ang Paglaki, Tuloy ang Pag unlad,” Buenavtura added.