MONDAY, 13 FEBRUARY 2012 20:17 MANUEL T. CAYON / REPORTER
DAVAO CITY—Increased loans among public-school teachers and business
owners pushed the net capital of One Network Bank (ONB) to P2.5 billion,
higher than the operating capital required of commercial banks.
But just like in the past when ONB declined to graduate into a thrift
bank when it also surpassed the capital requirement on commercial banks,
Alex B. Buenaventura, ONB president, said the bank would retain its
status as a rural bank to continue providing affordable and modern
banking services and to allow farmers and small entrepreneurs in the
countryside to access the banking system.
Most of its depositors also bulked up its intermediation ratio to nearly
1:1, further attesting to the attraction of rural banking among the
previously unbanked sectors of society, Buenaventura said.
ONB posted a net comprehensive income of P428 million last year, another
record 38-percent increase over its previous year performance of P311
million.
"With this record income, the widest and most modern rural bank's net
worth or net capital reached P2.5 billion, now exceeding the
P2.4-billion minimum capital required of commercial banks," Buenaventura
said.
The increase in its loan portfolio contributed to the surge in its net
income. The ONB posted a 72-percent increase, from P6 billion in 2010 to
P10.4 billion by the end of last year, with the biggest portfolio
increase coming from Mindanao government teachers.
The Department of Education has an existing agreement with ONB to enroll
its teachers in the loan program called DepEd Automatic Payroll
Deduction System (DepEd-APDS) Salary Loan Program.
As of end-2011, ONB's exposure to 48,467 DepEd teachers reached P5.9
billion "for a whopping 109-percent increase over year 2010," the ONB
statement said.
Business loans extended to small and medium enterprises (SMEs)
contributed the next higher account, which increased the portfolio
volume by 78 percent, from only P800 million to the P1.4 billion by
end-2011.
"This upsurge in lending increased ONB's loan intermediation ratio to
almost 1:1 [P10.4 billion loans: P10.5 billion deposits]," the statement
added.
Despite the elevated status in terms of financial income, Buenaventura
said the ONB would not convert to a commercial bank "principally because
of the lower 3-percent legal reserves required by the BSP [Bangko
Sentral ng Pilipinas] from RBs [rural banks] as against the 20-percent
legal reserves for [commercial banks]."
On its deposit liabilities reaching P10.5 billion, the ONB said this
represented an increase of 11 percent from the 2010 level of P9.4 billion.
He said the lower cost current account and savings account (CA/SA)
contributed 64 percent in total deposits, a significant part of which
came from the 360,000 PeraAgad Pinoy ATM cardholders. ONB traces the
popularity of this account to the lower opening deposit and maintaining
balance of only P100.
"This makes this convenient and affordable product very popular among
the small accounts especially in countryside areas all over Mindanao
where ONB is in most cases the only provider of ATM machines," the
bank's statement said.
The ONB now has total resources of P15.7 billion, also a big 33-percent
increase over the P 11.8-billion level in 2010.
"Our capital adequacy ratio remains very healthy at 20 percent, with the
NPL [nonperforming loan] ratio at 5 percent and the NPA [nonperforming
asset] ratio at four percent as of end-2011," the bank statement said.
Buenaventura said ONB is the widest private banking network in Mindanao
with 82 branches. It is also the most modern rural bank with a fleet of
114 PeraAgad ATMs and with the introduction of the new Internet banking
service now undergoing pilot testing.
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