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 1^st 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.