Sun Savings assets at P425M, a new high-A A +A
Sunday, May 18, 2014
SUN Savings Bank continued to grow significantly in the first quarter of 2014.
Total assets reached a new high of P425 million, which was 52 percent more than the year-ago level of P279 million. A major portion of the bank’s assets, amounting to P151 million, were held in deposits with the Bangko Sentral ng Pilipinas (BSP), reflecting the bank’s high level of liquidity.
Total loans also increased to P235 million, which was 65 percent higher than the year-ago level of P143 million. The bank continued to build up its loan portfolio to qualified Department of Education (DepEd) teachers, as it brought down its lending rate to 6.5 percent per annum, the lowest in Cebu.
The bank also started to offer pre-owned car loans in line with its focus to provide for the various financing needs of consumers. Even as the loans increased substantially, the high quality of the bank’s loan portfolio was maintained as evidenced by its very low net non-performing loans (NPL) ratio of less than one percent.
Growth in assets was primarily funded by the 73 percent growth in deposits, which reached a record level of P274 million, compared to the year-ago level of P158 million.
The bank raised a substantial amount of five-year time deposits during the quarter with the 5.5-percent per annum tax-free promo rate that it offered to depositors. This is expected to shield the bank from higher interest rates expected in the near future due to higher inflation and a fast growing economy.
The bank’s savings deposits also grew to a level of P51 million as its three-percent per annum interest rate continued to generate strong interest from depositors looking for a better alternative to the low rate of 0.5 percent interest offered by most banks.
The bank’s capital adequacy ratio (CAR) remained at a high level of 39 percent, which is way above the minimum of 10 percent required by the BSP. The CAR is a key measure of the financial strength of a banking institution as it shows the level of shareholders’ equity in relation to its risk assets.
(Disclosure: Sun Savings Chairman and President Francisco Dizon serves on the board of directors of Sun.Star Publishing Inc.)
In Mandaue soon
The BSP recently approved the transfer of the bank’s head office to Fuente Osmeña in Cebu City from its current head office at the Gaisano Fiesta Mall in Tabunok, Talisay City, which will be converted into a branch. This, the bank said in a press statement, is expected to boost further the deposit and lending operations, as Sun Savings becomes more accessible to its target markets, namely consumers and small and medium enterprises (SMEs). The bank has also secured a license from the BSP to open a full-service branch in Mandaue City.
Last year, the bank joined Bancnet, the country’s biggest ATM network, and is now operating its own ATM machines under the Sun Money brand. The bank said its ATMs are exceeding the high efficiency standards demanded by Bancnet.
For the full year 2013, the bank generated an audited net income of P4 million, an increase of 42 percent over the P2.8 million level in 2012.
Sun Savings Bank expects to continue with its high growth trajectory as it offers more competitive banking services to its target markets and uses technology and new media to reach these customers. (PR)
Published in the Sun.Star Cebu newspaper on May 19, 2014.