DAVAO CITY -- One Network Bank is exploring options to expand in the
Visayas through a possible merger with an Iloilo-based rural bank or by
setting up its own branches, the head of the Davao City-based bank said
in a statement over the weekend.
However, Alex V. Buenaventura, One Network Bank president, declined to
identify the rural bank in order not to preempt current negotiations.
At the same time, he explained that, in case the talks with the rural
bank fails, One Network Bank would still pursue its plan to set up
branches in Iloilo.
Mr. Buenaventura said it is actually cheaper for the bank to set up a
new branch, with about P7 million in capital expense for each office,
compared to hefty up-front costs of a merger.
But he also said merging with the local bank will mean a ready clientele.
"Another advantage of merging with a local rural bank is that we can use
our five licenses to set up five more branches in Mindanao," Mr.
Buenaventura explained, pointing out that under central bank
regulations, a bank can apply for five branches at a time.
In search of growth
The bank has been studying the Visayas market since late-2010, when it
started contemplating expansion in the area.
It had earlier cited areas in Iloilo for prospective branches as Iznart
street in Iloilo City as well as the towns of Oton, Tigbauan, Miag-ao,
Sta. Barbara and Oton.
Nelson L. Billena, bank branching head, had said earlier that the bank
will continue to look for growth areas where it could set up branches,
including areas that have no bank at all.
"Our desire is to reach out to communities that are growing, which need
modern banking services," he said.
Late in January, the bank held a soft opening of its Makati City branch,
the first outside Mindanao. The bank decided to put up a branch in the
country's premier financial center to serve the banking needs of its
parent Consunji Group.
The bank also opened its branches in Esperanza, Sultan Kudarat and in
Balingasag, Misamis Oriental.
Next month, the bank also plans to open branches in Sangali, a fishing
port in Zamboanga City, and in Butuan City.
Mr. Buenaventura added that the bank is looking at renovating key
branches, particularly those that have smaller offices.
One Network Bank also maintains branches in Davao del Norte, Davao del
Sur, Davao Oriental, Compostela Valley, North Cotabato, South Cotabato,
Sarangani, Agusan del Norte, Agusan del Sur, Surigao del Norte, Lanao
del Norte, Bukidnon, Misamis Occidental, Zamboanga del Norte, Zamboanga
del Sur and Zamboanga Zibugay. -- Carmelito Q. Francisco
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