Asialink Group targets P2.2 billion income this year

MANILA, Philippines — The Asialink Group of Companies is targeting a net income of at least P2.2 billion this year as it banks on robust economic growth, expanded product offerings and significant branch expansion.

During a contract signing with the World Bank’s International Finance Corp. (IFC) yesterday, Asialink Group finance director Maynard Mendoza said the financing firm is eyeing to increase its net income from the estimated P1.8 billion profit it recorded as of the third quarter of 2024.

Robert Jordan, Asialink Group CEO, said the group is optimistic about the country’s growth prospects this year as the government is projecting the Philippines to grow by six to 6.5 percent.

Robust economic growth will likely drive new product offerings as the group grows its lending portfolio for micro, small and medium enterprises (MSMEs).

“Aside from cars and trucks as collateral for MSME loans, we are starting to expand into real estate collateral for MSMEs. Businesses can now borrow against their property and we’re also supporting MSME property acquisitions by offering financing options,” he said.

The group is also focusing on truck loans, a product with significant growth potential. “Our truck loan receivables currently stand at roughly P5 billion to P7 billion, which is still low compared to the size of the industry,” Jordan said.

“This product is particularly important in regions like Mindanao, where trucks are essential for transporting goods, agricultural products and logistical supplies. We aim to grow this segment and positively impact the local economy,” he said.

Asialink also made significant strides in branch expansion in 2024, growing its branch network by more than 60 percent last year. Jordan said the group started with 300 branches and added 200 more, bringing total to over 500 branches.

“We are positive that these new branches will start contributing to loan releases and income in 2025,” he said.

He noted that there is still room for growth in underserved areas, particularly in Visayas and Mindanao. “There are still many areas where we can establish more branches.”

Asialink is also preparing for a potential initial public offering (IPO) in 2028, although the timeline could accelerate depending on market conditions.

“It depends on the market conditions; we might do an earlier IPO if the market is right,” Jordan said. “If our growth is sustained in 2025 and 2026, we might need to go to the capital markets for more equity earlier.”

Asialink’s capital stands at around P13 billion as of the third quarter of 2024. According to Jordan, the group may need an additional P5 billion to P6 billion to meet the requirements for the planned IPO.

Yesterday, Asialink Finance Corp. sealed a partnership involving a $130 million investment with the IFC, with Paulton & Co. acting as Asialink’s financial advisor to this transaction.

This partnership will empower AFC, Global Dominion Financing Inc. and South Asialink Finance Corp. to expand their lending capacity for MSMEs, allocating at least 60 percent of the funds to support women-owned or women-led businesses.