Buenaventura attributed this to the country’s resiliency and Mindanao’s agriculture business that has improved over the years and has been benefiting the banking sector.
He said the increase in deposits of about P1.5 billion came mainly from savings depositors who contributed an additional P900 million or 29 percent increase against last year’s. There are about 590,000 accounts for the small depositors as of June 2010.
Buenaventura said over the years, an average of 5,000 new accounts has been opened mostly by small depositors either through the affordable “PeraAgad ATM Pinoy Card” of only P100 or the affordable Regular Savings Account also of P100 for the opening amount.
He added the time deposit is also a major contributor to the increase in deposits which contributed P600 million, up by 34 percent from last year’s level.
He said this could be explained mainly by the placements from big depositors or high network clients who have now developed the confidence in trusting their money with a big rural bank.
On the other hand, Buenaventura said the outlook for the second half of the year in terms of net income is much better than actual performance in the first half.
He said the point of view is mainly due to the projected more aggressive lending under the Department of Education (DepEd) Salary Loan Program and One Business Loan Program.
The product features and delivery systems of both programs have recently been enhanced to be more competitive against other banks who have taken out market share from ONB over the last year of less P400 million, or six percent in ONB loan portfolio.
Given these drivers, Buenaventura said ONB accumulates P136 million net income within the first half of this year.
This represents a big 32-percent increase over last year’s net income of only P103 million.
“With our theme for year 2010 ‘The Big Bank in Countryside Mindanao’, now with 75 branches, we are greatly inspired by ONB’s new-found trust and patronage from new big depositors from all over Mindanao,” he said. (PNA)