Sun Savings Bank maintains growth in Q1

 In News

SUN Savings Bank maintained its steady pace of growth in the first quarter of 2020, compared to a year ago. Total assets continued to climb to P1.995 billion, representing an increase of 17 percent over the year ago level of P1.712 billion.

The net loan portfolio reached a new high of P1.45 billion, an increase of 19 percent over the year ago level. The quality of the loan portfolio also continued to improve further, as the NPL ratio went down to 1.61 percent from last year’s level of 1.77 percent.

On the liabilities side, total deposits increased further to P1.34 billion, showing a growth of 17 percent over the year ago level. Bills payable to other banks also increased to P255 million from P211 million a year ago,representing an annual increase of 21 percent.

The total shareholders equity also increased significantly to P351 million, from last year’s level of only P256 million, as the bank’s shareholders infused fresh capital into the bank and retained earnings increased further. This resulted in a high Capital Adequacy Ratio of 21 percent which is more than double the 10 percent required by the Bangko Sentral ng Pilipinas (BSP).

Total interest income for the quarter increased by P58.5 million or 10.6 percent as compared to the previous year.

Net income before tax declined slightly to P13.6 million from the year ago level of 16.5 million due primarily to additional costs incurred with the two new BLUs opened in late December 2019 (Ayala-Solinea) and early March 2020 (Carbon Market) as compared to none last year. There were also additional one time costs incurred to cope with the adverse effects of Covid-19, such as the special cash assistance given to all its staff in March.

Nevertheless, the bank has clearly strengthened its balance sheet, especially its liquidity position in the first quarter of 2020 in order to overcome the challenges brought about by the Covid-19 pandemic. The bank’s Minimum Liquidity Ratio was 31 percent as of March 31, more than double the 16 percent requirement of the BSP.

In the first quarter of 2020, the bank continued to expand its network of banking offices to seven, as it opened another branch lite unit (BLUs) to service the banking needs of its target markets.

The new BLU is located at the corner of Plaridel St. and Progreso St., in front of the Carbon Market. This new BLU will serve the banking requirements of small and medium enterprises (SMEs) operating in the area, especially those engaged in the agricultural value chain, such as fish and vegetable wholesalers and meat processors.

The Carbon Market BLU and the Ayala-Solinea BLU are expected to contribute significantly to the bank’s growth and profitability in the coming years. (PR)

 

Source: https://www.sunstar.com.ph/article/1857769/%20Cebu/Business/Sun-Savings-Bank-maintains-growth-in-Q1

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