Wednesday, 07 November 2012 14:18
A solid core performance for the first nine months of 2012 has led to ONB’s high income growth so far in 2012. After posting 118% growth from last year's figure of P219 M, the operating net income after tax of P478 M has already surpassed the P437 M forecast for the end of the year.
If annualized, the net income level translates to a 39% return on average private equity, a 4% return on average assets and P3.47 earnings per share which is an increase of 27% compared to the P2.74 posted in the same period in 2011 - all of which illustrate the bank's profitability. As of end September 2012, ONB augmented its capital base to P2.91 B - a feat for a rural bank as the figure way exceeds minimum capital requisite for commercial banks.
The revenue boost has primarily been driven by an improving trend in interest income derived from loans. Loans yielded a substantial income of P944 M or an increment of 31% from last year. Fee based income primarily obtained from service fees jumped to P540 M which is 68% higher than the P321 M level reported a year earlier.
As of end September 2012, ONB generated a loan portfolio of P13.5 B or a 69% increase from the same period last year and has serviced a pool of 94,990 borrowers with an average loan size of P142 K. This loan expansion, essentially backed up by the bank's objective of reinvesting all profits, has been further reinforced by the P14 B surge in deposit base which is a 46% hike from the P9 B level in September 2011. The bank currently has a number of 585,000 depositors. Total resources, meanwhile, grew to P18 B or a 48% ascent from the same period last year.
The third quarter of the year saw successful launching of the ONB Business Online Banking as well as the ONB MicroBranch. Sustained growth is seen in the deployment of 2,000 ONB CashPoint POS terminals to merchants until 2013 and in the expansion of the PeraAgad ATMs. Encouraged by this exceptional 3rd quarter performance, ONB, powered by 1,296 professionals with Head Office operations at the modern 7-storey ONB Center in Sasa, Davao City, takes on the last quarter of 2012 with more confidence.
At present, ONB operates with 86 branches in Mindanao and in Makati, 5 MicroBranches located in Davao City barangays and a fleet of 131 onsite and offsite ATMs. The recent approval by authorities for 5 more branches in the province of Iloilo marks ONB's venture into the Visayas. Furthermore, the bank has an ongoing merger application with RB San Enrique which has 6 existing offices in Iloilo soon to be absorbed by ONB. This paves the way for ONB to fortify its brand of modern and inclusive banking through the potential network of 97 branches all over the country by 2013.
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