ONB ups income by 34% in 2013-A A +A
Wednesday, March 19, 2014
PROPELLED by increased in deposits and interest earnings on loans, homegrown One Network Bank, the country's leading rural bank, posted a record net operating income after tax of P743 million in 2013, representing an increase of 34 percent as compared to the previous year's P556 million.
Improvement in the bank's net income can also be attributed to its initiative to deliver affordable loan products and banking solutions to unserved and underserved sectors.
In a statement, ONB reported that last year's net income exceeded the bank's projected earnings by 20 percent as even as key financial ratios were also maintained at high levels with 22 percent return on average equity and 3.25 percent return on average assets.
Interest earnings on loans hiked to P1.67 billion which is a 13 percent increment from the same period last year. Fee-based income driven by service fees on loans also posted a 16.46 percent year-on-year growth to P842 million.
Deposits coming from ONB's more than 663,000 account holders across its 98-branch network surged by 27.6 percent to a level reaching P18 billion.
ONB said these deposits have boosted the bank's loan portfolio to P18 billion, a 23.2 percent ascent from its year ago level, which supported roughly 104,400 borrowers.
Even with the aggressive expansion of loan portfolio, tighter monitoring of loans quality reduced the bank’s non-performing loans (NPL) ratio to 1.97 percent. Risk based capital adequacy ratio was maintained at 18.39 percent, well above the BSP minimum requirement of 10 percent.
The high income rate expanded the bank's capital base to P3.71 billion as of end December 2013. Total resources, meanwhile, reached P25.65 billion, up by 27.47 percent from the same period last year.
ONB has continued to remain true to its position as the widest and most modern rural banking network. As of March 2014, ONB operates 147 automated teller machines (ATMs) which are all connected to BancNet, the country’s largest electronic banking network.
Relative to the bank's enduring goal to provide the countryside with an enjoyable modern banking experience, ONB inaugurated a new building for its Midsayap Branch in North Cotabato last December 12, 2013. The branch boasts of a modern and spacious interior with a parking area that can accommodate more vehicles.
ONB also inaugurated in October 2013 its first modern building in Panay area for its branch in Dingle, Iloilo. Construction is in full swing for five other branches, a second branch in Mati, three branches in Iloilo (Barotac Nuevo, Pototan and Estancia) and one in San Jose de Buenavista in Antique. Expansion of branch facilities in existing sites is likewise ongoing in Jordan (Guimaras), San Pedro (Davao City) and Tagum (Davao del Norte).
Published in the Sun.Star Davao newspaper on March 19, 2014.