Rizal Microbank eyes more loans, offices
RIZAL MICROBANK, the microfinance arm of Yuchengco-led Rizal Commercial
Banking Corp. (RCBC), seeks to expand its loan portfolio by more than
half this year and has rolled out a plan to strengthen its operations in
Luzon and Mindanao.
"We want to grow our loan disbursements to P400 million by end-2012,"
said John G. Deveras, Rizal Microbank vice- chairman, in a phone
interview last Tuesday.
He added the bank will open new branches and micro-banking offices (MBO)
in Luzon and Mindanao to extend its reach.
Rizal Microbank, the result of the merger between Pres. Jose P. Laurel
Rural Bank, Inc. and Rizal Microbank (formerly the Merchants Savings &
Loan Association, Inc.), has 10 branches in southern Luzon and eight
branches in southern Mindanao at present. The merger was approved by the
central bank in March.
In Luzon, Rizal Microbank will establish a branch in Lipa, Batangas and
Puerto Princesa City, and one MBO each in Malvar, Batangas; San Juan,
Batangas; and Cabuyao, Laguna.
In Mindanao, it will set up a branch each in General Santos City;
Valencia City, Bukidnon; and Butuan City; and two MBOs in Davao City.
JP Laurel Rural Bank and Rizal Microbank disbursed a total of P260
million in loans last year, falling short of their P300 million combined
target.
Loans averaged P50,000, carried a 2% interest rate and had tenors of
three to six months.
"We don't favor any industry in lending. We lend to anyone who is a good
business person. Our clients usually use the money for their working
capital," Mr. Deveras said.
Asked if Rizal Microbank plans to expand to Visayas, he said in a text
message yesterday: "We are not yet ready to manage offices in Visayas
and there's still lots of room for growth in Mindanao and southern Luzon."
He also pointed out the thrift bank has "more than enough capital" to
build new branches, which usually cost around P2 million each, and put
up MBOs, which cost around P500,000 each.
RCBC has infused Rizal Microbank with P500 million in additional capital
to support its operations this year and the next year as it is not
expected to turn in a profit until 2014.
Mr. Deveras also said the bank will be "aggressive" in hiring lending
officers or microfinance account officers but did not say the number the
bank will employ.
Microfinance account officers are in charge of marketing the bank's
microfinance products and conducting intensive credit investigation or
background checks to establish a client's character and capacity to pay.
RCBC ventured into microfinance in July 2009 after buying J. P. Laurel
Bank based in Batangas in February 2009 and Rizal Microbank, which had
branches in southern Mindanao, in May 2008. -- A. R. R. Gregorio
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