One Network Bank posts P145M income in Q1-A A +A
Friday, May 30, 2014
HOMEGROWN rural bank, One Network Bank Inc., posted a net income of P145 million in the first quarter of 2014, an increment of seven percent from the same period last year.
This net income level, if annualized, translates to a 26 percent return on average private equity and two percent return on assets.
Improvement in the bank’s revenue was buoyed by the sturdy performance of its net interest income and fee-based income.
Net interest income leapt by 16 percent to P313.9 million, on the back of the bank’s consolidated loan portfolio, which rose to P18.9 billion or 22 percent from the P15.6 billion level reported a year ago.
Meanwhile, fee-based income accumulated to P280 million or a growth of 11 percent. Accounting for 82 percent of the total non-interest profit is service fees on loans, while the remainder is composed of income gained from service fees on deposits, ATM, point-of-sale terminals and utilities.
Deposits pooled from the bank’s 677,300 account holders chalked up to P17.3 billion, which is a substantial 14 percent growth from the P15.2 billion level in the same period last year.
ONB’s risk-based capital adequacy ratio stands strong at 17.5 percent, manifesting the bank’s preparedness for its expansion programs.
The bank continues to exceed the P2.4 billion minimum capital requisite for commercial banks as it posted a P3.82 billion record total capital as of March 2014. Total resources escalated by 22 percent to P25.4 billion.
ONB held its annual stockholders meeting last May 17, during which Victor A. Consunji and Antonio P. Avelino were re-elected chair and vice chair of the board of directors, respectively.
Also re-elected to the board were Alex V. Buenaventura who was later re-elected by the board as president; Antonio R. Cabreira and Luz Consuelo A. Consunji, directors; and Rev. Fr. Agustin L. Nazareno and Evelyn T. Ang as independent directors.
After its migration to the BancNet consortium, ONB’s Pera Agad ATM breached the 150th mark in May 2014. ONB now has 153 ATMs, recent deployments of which support the bank’s expansion in Panay.
In 2013, the bank’s 143 ATMs made up 43 percent of the combined number of ATMs operated by rural banks. Many of these ATMs are deployed in communities where ONB is the sole provider of ATM services, a clear indication of the bank’s steadfast commitment to make affordable banking services more accessible in unserved and underserved areas.
ONB carves another mark in the rural banking industry as the first rural bank given authority by the BSP to perform Trust and other fiduciary.
In preparation for its full launch, the bank’s board of directors, senior management and members of its newly created Trust Department recently attended a seminar on Basic Trust Banking held on May 15-16, 2014 at the Grand Regal Hotel in Davao City with Atty. Manuel B. Curato, Mr. Roberto S. Vergara and Ms. Concepcion A. Garcia as lecturers.
The seminar, deemed as essential in preparing for the bank’s Trust operations, covered Basic Concepts of Trust, Government Regulations and Basic Standards in the administration of Trust, Other Fiduciary and Investment Management Accounts, Corporate Governance and Risk Management Guidelines for Trust and Code of Conduct and Ethics for Trust Practitioners.
Published in the Sun.Star Davao newspaper on May 31, 2014.