ONB ’11 net comprehensive income hit P428 million for a record 38 % increase over previous year. With this record income, the widest and most modern rural bank’s networth or net capital reached P 2.5 Billion now exceeding the P 2.4 Billion minimum capital required of commercial banks. “ONB will not convert to KB status principally because of the lower 3 % legal reserves required by BSP from RBs as against the 21 % legal reserves for KBs” says Alex V. Buenaventura, ONB president.
The main contributor to ONB’s record net comprehensive income is the 72 % increase in loan portfolio from P 6 Billion in 2010 to P 10.4 Billion by end 2011. The biggest portfolio increase was realized from Mindanao government teachers under the DepEd-APDS Salary Loan Program. As of end 2011, ONB’s exposure to 48,467 DepEd teachers reached P 5.9 Billion for a whopping 109 % increase over 2010. Business Loans to SMEs contributed next highest at 78 % increase in volume from only P .8 Billion to the P 1.4 Billion level by end 2011. This upsurge in lending increased ONB’s loan intermediation ratio to almost 1:1 (P 10.4 Billion Loans: P 10.5 Billion Deposits).
The P 10.5 Billion Deposit Liabilities as of end 2011 represents an 11 % increase from the P 9.4 Billion level in 2010. Lower cost CA/SA deposits account for 64 % of total deposits, a significant part of which come from around 360,000 PeraAgad Pinoy ATM Cardholders whose opening/maintaining balance of only P 100 makes this convenient and affordable product very popular among the small accounts especially in countryside areas all over Mindanao where ONB is in most cases the only provider of ATM machines.
Total resources as of end 2011 reached P 15.7 Billion for a big 33 % increase over the P 11.8 Billion level in 2010. Capital Adequacy Ratio remains very healthy at 20 %, NPL Ratio at 5 % and NPA Ratio at 4 % as of end 2011.
