CBI hits P1B
To double assets by 2015 (2B5)
By: Sheryl B. Asio
Under the stewardship of Lt. Gen. William K.
Hotchkiss (Ret.), Cantilan Bank concluded 2010 by hitting
the medium term target of P1B in assets and
resources.
The P155M-worth bank, after its success in 2010, is now
gearing towards another charge: the leap to double its
assets from P1B to P2B by 2015.
Backed by its earnings from lending
operations and other banking services, as well as its
improved operations and asset quality management, CBI saw
its net income rise from P6M in 2006 to P28.87M in 2010 –
a staggering 370% increase in a span of four
years. And
with the implementation of its ambitious expansion
program coupled with adoption of new technologies, it
widened its borders from a 9-branch bank operating within
Surigao del Norte and Sur to a 12-branch undertaking with
a reach as far as the Compostela
Valley.
Its loans and receivables went up to 122.20%
compared to 2006’s as it launched new products and
programs such as the Business Enterprise Loan and the
Risk-based Lending Program for small and medium
enterprises.
The cheapest source of funds – the deposits
– rose 110% from P287M to P604.9M in the four years
ending 2010.
With the introduction of current accounts within the
1st quarter of 2011, the deposit level is
expected to increase from the baseline of P580M in 2010
to P708M in 2011 or an increment of P128M.
The banks’s five-year expansion plan which
was recently drafted, aims to make Cantilan Bank a
recognized name for excellence in community banking in as
many locations as possible, nationwide. The management will
open 10 more branches in addition to its 12 existing
branches aside from its preparation for the conversion of
its existing 22 “kiosks” or other banking offices (OBOs)
into microfinance banking offices (MBOs). Just last year, the
bank inaugurated two new office buildings for its Tagbina
and Surigao City branches; and before end of March 2011
Tagum and Davao City branches will be opened for
service.
Starting 2011, the bank will be offering its
own ATM-based savings program and will purchase its own
ATMs to be installed in selected branches in order to
generate more low cost funds on top of providing easy
access and convenience for on-line
transactions.
Furthermore, the introduction of ATM-based
savings is tied to the more ambitious plan to retire the
existing two (2) banking systems and acquire a new
banking system that will ultimately eliminate the
existing one within two years. The plan for one
banking system will come into several conversion stages
to ensure stability of implementation of each systems
module.
The company is targeting to grow revenue by
35 percent this year.
Acquisitions
For the year 2010, the bank was able to
acquire the following properties: lot and building at San
Francisco, Agusan del Sur; lot at Taganito, Claver,
Surigao del Norte; new office buildings for Tagbina and
Surigao City Branches and two new units of service
vehicles for Butuan and CHQ (Toyota Innova and Toyota
Super Grandia). To be able to enhance
further the bank’s customer service, a new core banking
software was also purchased last October
2010.
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