The One Network Bank reported that its loan window went up by 39%
during the first three quarters of the year to P8 billion compared
with the same period last year.
This was driven by the continued patronage of public school teachers
as loans extended to them went up by 28.9 to P4.54 billion from P3.23
billion last year.
Alex V. Buenaventura, bank president said the tremendous upsurge is
brought by the regained competitiveness of the bank in lending to
teachers. The bank not only reduced the interest rate on this loan to
7.5% per year from 12% per year, but also doubled the maximum loan
amount to P300,000 per borrower.
The bank also increased the loan term to three years from two years.
However, the profitability of the bank suffered a drop of 27% from
P216 million in income during the previous year to P157 million this
year. Mr. Buenaventura explained that one of the reasons in the drop
of net income was the P27 million in loan-loss provision and the P20
million used in absorbing the Rural Bank of New Corella.
Its deposits went up by 12% during the period to P9.4 billion, or P1
billion more than the same period last year, Mr. Buenaventura added.
Trailblazing One Network Bank is initially establishing
next year five micro-banking offices in the city in response to the
recently- approved circular of the Bangko Sentral ng Pilipinas.
These offices, the bank said in a statement, will provide services to
smaller accounts. Among these services are deposits and withdrawals,
check deposits, loan windows for microfinance accouns, other
microfinance products and purchase of foreign currencies of up to $300
(P13,027.60 @ $1=43.42) per client.
The offices will be located in Catalunan Grande, Cabantian, Bunawan,
Sasa and Piapi.
The bank is spending about P4.17 million ($108,232) as capital
expenditure for each office is about P834,000 ($19,258.7). These
offices will each have a automated teller machine, a point-of-sale
debit bills payments, electronic foreign remittance, online
interbranch cashe transfer and Internet banking
In the first three years of operations, these offices are expected to
contribute about P534,000 ($12,331.1 in income based on bank projection.
“The only limitation for each MBO is that only micro deposits of not
more than P15,000 ($346.38) and only micro loans of not more than
P150,000 ($3,463.8) are allowed by BSP to be serviced by MBOs,” the
bank said.
