ONB posts 93% increase in income, retains rural status PDF Print E-mail
Monday, 27 August 2012 14:10

Rural banking giant One Network Bank already exceeded the P2.4 B minimum capital requisite for commercial banks as it raised its capital base to a robust P2.77B as of end July 2012. Despite the obvious capacity to convert to a commercial bank, ONB decided to retain its status as a frontrunner in the rural banking industry.

Furthermore, in the first 7 months of 2012, ONB has outperformed its own 2011 earnings performance. The operating net income after tax of Php 336 M as of end July 2012 already surpassed the Php 315 M income for the year 2011 and registered a record breaking growth of 93% compared to the P174 M in the same period last year. This net income level, if annualized, translates to a 41% return on average private equity and 4% return on average assets, indicating a powerful core performance for the leading provider of modern quality banking products and services in the countryside.

This upsurge in net income is mainly attributed to the substantial expansion in net loans and receivables which is an increase of around 17% or P1.83 B since the onset of 2012, half of which was recorded in the month of July 2012, or a loan portfolio growth of 70% or around P5 B compared to July 2011. The P775M net interest income as of July 2012 accounted for 61% of the total operating income while 28% or P361 M is composed of fee-based income principally derived from service fees on loans.

This loan expansion was made possible essentially by an increase in both deposits of 40% or P14 B from the P10 B level in July 2011 and capitalization due to the Bank’s policy of reinvesting all profits. As of end July 2012, the bank’s pool of depositors already reached a number of 575,000. The bank’s total resources grew to P17 B or a 37% increment from last year’s figure of P12.5 B. 

The strong deposit and loans growth is backed up by the bank’s intensive branch expansion. Earlier this year, ONB opened its 83rd branch in Pasong Tamo Extension, Makati City as a response to the need of Mindanao clients for a financial highway to the country’s central business district. ONB Makati Branch is the bank’s first branch outside of Mindanao and the first branch to open in 2012. Other branches inaugurated in the first quarter of 2012 are its 2nd branch in Butuan City, Balingasag in Misamis Oriental, and Sangali in Zamboanga City. Sustained growth is foreseen in the light of the recent approval from BSP for 5 more branches in loilo. These branches will complement the existing 6 offices of RB of San Enrique in Iloilo soon to be absorbed by ONB once the merger secures approval of banking authorities.

ONB also continues to carry out its inclusive banking formula without investing as much as it does for regular branches through the launch of the ONB MicroBranch, a very accessible micro banking office (MBO) located in the barangay, providing modern financial services to micro-depositors in the area thru its counters, ATMs, POS and internet banking.  For the rest of 2012, ONB is opening five (5) MBOs in the barangays of Davao City, namely: Sasa, Cabantian, Catalunan Grande, Sandawa, and Bunawan.

ONB maintains its confident outlook for the remainder of 2012 as it moves toward introducing more modern banking products and services through electronic channels and expanding its network of branches, ATMs and POS, even without going commercial. The bank, powered by its 1,291 employees, currently operates a network of 86 branches and 125 PeraAgad ATMs, with back office support system coming from the recently transferred Head Office to a modern 7-storey ONB Center in Sasa, Davao City.