Sun Savings Bank: Where growth is not just a goal, but a culture
SUN Savings Bank’s total assets grew by a remarkable 19.5 percent in 2023, which was higher than the growth rate of the entire banking industry which was only 7.6 percent. Thus, in 2023, the bank’s total assets reached a record level of P3.6 billion.
The bank’s superior growth rate once again demonstrated its ability to adapt and thrive in a challenging economic environment, as the Bangko Sentral ng Pilipinas (BSP) maintained its reference borrowing and lending rates at their highest levels, in order to bring down the inflation rate to its target range of 24 percent.
The significant growth in total assets was accounted for primarily by the 19 percent growth of its loan portfolio, which reached a new high of P2.8 billion in 2023. The growth in the bank’s loan portfolio was complimented by an extraordinary increase of 142.5 percent of its total deposits amounting to P279 million with the BSP, from last year’s level of P115 million only.
This meant that the bank improved further its liquidity position in 2023 despite the significant increase in its loan portfolio. This complimentary expansion of its loans and liquid assets, shows the bank’s strong capability to continue providing financial support to its borrowers as well as cover unexpected outflows.
The substantial increase in the bank’s loan portfolio and liquidity was funded primarily by the 20.5 percent growth in total deposit liabilities which reached a new high of P2.12 billion by year end 2023. The growth rate in deposits of 20.5 percent exceeded that of the banking industry which grew by seven percent only.
Rewarding, competitive interest rates
The bank has consistently offered rewarding and competitive interest rates combined with a wide range of deposit products with varying maturities to reward and delight its depositors. Simultaneously, the bank’s availment of medium-term bank loans with Land Bank of the Philippines, Development Bank of the Philippines, Philippine National Bank, Robinsons Bank, Bank of the Philippine Islands, Rizal Commercial Banking Corp. and Multinational Investment Bancorporation, increased by 17.6 percent to P894 million. This growth in total liabilities clearly demonstrated the bank’s capacity to expand and grow in the face of economic headwinds.
To further strengthen the capital base of the bank and show their commitment to the bank’s growth, the shareholders did not pay any cash dividends but kept in the bank, all the net income generated during the year. This resulted in an 18 percent increase in total shareholders equity to almost P545 million by year end 2023. In turn, the bank’s CAR or capital adequacy ratio was at 16.3, way above the BSP requirement of 10.
In the coming year, the bank plans to expand its geographic reach by opening new branch lite units (BLUs) in Bohol, Negros Oriental, and northern and southern Cebu.
Sun Savings Bank focuses on its growth, which is not just a goal, but a culture. With its innovative loan and deposit products and services being delivered by a dedicated team of professionals, the bank’s growth continues at a strong pace. And, the bank is able to deliver on its promise as “The Bank that Rewards” everyone.