One Network Bank income up by 38%
By CARMELITO Q. FRANCISCO, Correspondent
DAVAO City — One Network Bank Inc. increased its net income 38% annually to P428 million in 2011, driven by loans to key market segments like public school teachers, a statement on Monday read.
The press statement quoted the Mindanao-based rural bank’s president and chief executive officer, Alex V. Buenaventura, as noting public school teachers made up the biggest client segment, to which loans surged 109% annually to hit P5.9 billion last year.
About two years ago, the bank lost some of its teacher-borrowers to competitors which offered lower rates and bigger loanable amounts. “Now, many of those who left us are slowly returning,” Mr. Buenaventura noted. He recalled that, in order to lure back these borrowers, the bank cut its interest rate to 12% and increased loanable amount to P250,000 from P150,000 in the previous year.
Loans to businesses nearly doubled to P1.4 billion last year from P800 million 2010. Total loans rose by nearly three-fourths to P10.4 billion from P6 billion in the same years. Deposits rose 11% annually from P9.4 billion in 2010.
Total bank resources rose 33% to P15.7 billion last year. This year, the bank, which has 82 branches with 114 automated teller machines throughout Mindanao, plans to introduce Internet banking services and to branch out to areas in the Visayas, Mr. Buenaventura said. One Network Bank was the result of a consolidation in 2004 of the Rural Bank of Panabo, Network Rural Bank (Davao) and Provident Rural Bank of Cotabato.