Sun Savings bank reaches new heights

AFTER seven years in operation, Sun Savings Bank continues to generate significant growth.

In the first half of 2018, total assets soared to a record high of P1.33 billion, an increase of 38 percent compared to the year-ago level of just P960 million.

The growth in total assets was driven by a 28 percent growth in total deposits, which reached a high of P843 million. Other significant contributors to asset growth were shareholder’s capital, which increased by 22 percent to P230 million and medium term bills payable to banks, which more than doubled to P213 million.

This growth in total funding sources generated a 50-percent increase in the total loan portfolio, which is at a record high of P1.16 billion, as of the end of the first half of the year. Of this total amount, P838 million is composed of DepEd teachers loans, auto, housing and SME loans. An additional P367 million was lent to the BSP in short term loans, providing a substantial liquidity buffer.

The bank’s loan portfolio continues to be strong as the gross non-performing loans (NPL) level remained at a low of 1.8 percent compared to the thrift banking industry level of 5.2 percent, as of May 2018.

As part of its strategy, the bank continues to offer more rewards to depositors.

The bank raised the interest rate for short term time deposits to three percent per annum or more, depending on the deposit amount. For one-year time deposits, the bank offered a more rewarding interest rate of 3.95 percent per annum, payable one year in advance for deposits of at least P250,000. This was in line with the increase of 1/2 of one percent per annum made by the Bangko Sentral ng Pilipinas on its own borrowing rates.

The bank also signed a new agreement with the Department of Education, for loans to its teachers and personnel under its Automatic Payroll Deduction System (APDS). The bank intends to offer creative banking products to DepEd personnel, whose numbers continue to grow by the thousands every year. This will ensure continued growth in the bank’s DepEd loans portfolio.

The bank is also increasing its authorized capital stock to P1 billion from its current level of only P500 million. The bank’s stockholders have already made additional deposits for future subscriptions to the increase in the bank’s authorized capital stock. It is now awaiting regulatory approvals from the BSP and the SEC.

In the coming months and years, the bank will transform itself into a digital bank which will widen its customer base nationwide and allow it to reach the overseas Filipino community. (PR)

Read more: https://www.sunstar.com.ph/article/1756677/Cebu/Business/Sun-Savings-bank-reaches-new-heights