Sun Savings Bank strides forward

SUN Savings Bank continued to generate high growth results as its total assets grew by 33

percent to P1.87 billion as of the end of the third quarter, compared to the year ago level of

P1.4 billion.

Total loans however, grew at a much faster rate of 50 percent and reached a level of P1.35

billion as compared to the year ago level of P901 million. This resulted in a significant

increase of 84 percent in net interest income which reached a level of P117 million compared

to last year of only P56 million.

The bank’s net interest margin (NIM), which is the difference between its yield on its assets versus

cost of funds principally deposits, grew further to 9.2 percent from 7.5 percent a year ago and

compares favorably with thrift bank industry level of 5.4 percent as of the first half of this year.

This was due to the bank’s successful efforts to deploy its liquidity to higher yielding loans, instead of

government securities. Furthermore, the quality of the bank’s loan portfolio improved further as the

net non-performing loan ratio went down to 1.26 percent compared to the year ago level of two

percent.

The level of deposits matched the pace of growth in loans.

The total deposits generated by the bank increased by 49 percent to P1.35 billion, as compared to

P909 million a year ago. Further, total stockholders equity increased by 38 percent to P323 million

from P235 million. This resulted in a high capital adequacy ratio of 20.9 percent, double the level of

10 percent required by the Bangko Sentral ng Pilipinas. The bank’s annualized return on equity also

improved considerably to 15.9 percent per annum as compared to the year ago level of 7.6 percent per

annum.

Sun Savings Bank continues to offer its consumer and small and medium enterprise (SME) target

markets, the most rewarding deposit rates for their hard earned savings.

In particular, the savings deposit rate of two percent per annum and six percent per annum tax free for

time deposits of five years and one month, continue to be the best in the market today.

For loans, the bank designs innovative financing packages for salary, auto, housing and SME loans,

that meet the financing needs of its target markets. This is the principal reason for the substantial

growth in loan levels and higher NIMs. (PR)

Read more:  https://www.sunstar.com.ph/article/1830431