Veterans Bank resources higher by 11%

MANILA, Philippines - Philippine Veterans Bank, the commercial bank owned by war veterans, Monday said its total resources grew by 11.5% to P40.6 billion in the first quarter from P36.4 billion in end-December last year due to higher deposits. In a statement, Ricardo A. Balbido, Jr. said the higher deposits resulted from "aggressive sales and marketing efforts" and "innovative banking services." "These figures prove we are on the right track," he said. "We’re also seeing substantial growth in lending." The bank’s capital stood at P4.53 billion as of March, up by 3% from December’s P4.4 billion. Its capital adequacy ratio — a measure of a bank’s capability to shoulder risks — was at 22.39%, well above the 10% regulatory minimum. Mr. Balbido said rising food and fuel prices, higher inflation and intense competition among banks would "add pressure" on the profitability of the bank, whose net income in the first quarter he did not disclose. He had earlier said the bank eyes a profit target of P630 million this year from an audited net income of P528 million in 2007. He said he is optimistic of achieving this target, as the bank adds new branches to its current 45. Philippine Veterans Bank, owned by war veterans, sets aside 20% of its net income to its shareholders through the Board of Trustees for the Veterans of World War II. - BusinesWorld