ASIATRUST BANK POSTS P8.19M INCOME FOR THE QUARTER
Thursday, May 22, 2008
Asiatrust Bank reported a net income of P8.191million for the quarter ending March 31, 2008.
The Bank's initiatives for the fiscal year focused on improvement of the spreads through a deliberate sourcing strategy to concentrate on lower cost retail deposits, rationalization of cost of funds and improvement of deposit mix, continuous effort to generate new quality loans on targeted market niches in real estate, selected SME segments and salary loans, weeding out of undesirable weak borrowing accounts, and reduction of non-performing assets. Results were expected to be seen in the 2nd half of the fiscal year, and have already shown in the last quarter.
The Bank's aggressive resolution efforts on non-performing loans (NPL) for the fiscal year resulted in reduced NPL volume by P452M for the past 9 months. Investment Properties and Non-Current Assets Held for
Sale showed a net decrease of P335M mainly due to sale of properties and P70M sale of ROPA to SPV during the period which has resulted to the reduction of non-earning and risk assets. Consequently, NPL Ratio (Net) decreased by 0.63% from 12.36% as of June 30, 2007 to 11.73% as of March 31, 2008. The ratio will improve further as the Bank generates more quality loan assets. Non-Performing Asset Ratio (NPA) net also decreased by 4.17% from 20.91% to 16.74% for the same comparative periods.
These initiatives were strongly supported by improved MIS for more structured Asset-Liability management and strategies, reinforcement of manpower complement for NPA disposal-related groups, and several rounds of cost budget review and analysis. The Bank also continues to embark on an aggressive marketing strategy to attract more consumers and increase its lending portfolio. It also continues to expand its presence to serve SMEs. Recently, Asiatrust Bank's Kalayaan Branch opened its doors to serve the public. The new full-service branch is situated at the Upper Ground, FIL Garcia Tower, 140 Kalayaan Avenue corner Mayaman Street, Diliman, Quezon City.
The Bank is determined to continue its improvements to its financial performance while continuing its thrust on customer service excellence and SME market leadership built on almost 48 years of supporting the nation's small and medium enterprises.
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