Robinsons Bank to set up more branches this year
ROBINSONS Bank Corp. (Robinsons Bank) is looking to add more branches to its existing network as it moves to “expand aggressively” to grow its clientele and expand its footprint nationwide.
The banking arm of the Gokongweiled JG Summit Holdings, Inc., the Philippines’ second largest conglomerate in terms of market value, plans to have 132 branches by the first quarter of 2017. The lender ended 2015 with 112 branches mostly in restricted areas.
“We got BSP (Bangko Sentral ng Pilipinas) approval already for 20 branches, two in restricted and 18 in non-restricted areas. We hope to open all 20 new branches up to the first quarter of 2017,” Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said in a text message.
“We ended 2015 with 112 branches so we should be at 132 branches by the first quarter of 2017,” he added.
Mr. Sarte had said the bank’s expansion plans are meant to position its presence in the commercial banking sector as it prepares for stiffer competition after banking rules were liberalized in 2014 and as banking systems in the region are set to integrate.
BULKING UP
“We need to bulk up, we need to scale up to survive,” Mr. Sarte said, adding that Robinsons Bank’s capital expenditure for branch-related expansion for 2016 is “set at P182.5 million which will cover for 20 new branches, 10 relocation/renovation and branch license fees.”
The Gokongwei-led bank intends to have 200 branches by 2020. “With our expanded branch network, we hope to increase our penetration of the credit market both in the commercial and consumer lending segments.”
Opening a new branch is estimated to cost the lender “about P5- 6 million,” plus hiring expenses.
Robinsons Bank expects to surpass its earnings last year and hit its income guidance for 2016 on the back of encouraging results seen in its first semester, driven by the surge in loans, fees and favorable trading gains.
ON TRACK
The lender is poised to grow its net profit to about P228.8 million, which the bank set as its income target earlier this year. In 2015, the mid-sized lender raked in P173.6 million in earnings, higher than its 2014 net income of P126.6 million as its core profit continued to expand.
The bank’s income for the January to June period already reached P120.3 million, almost double or 89.7% higher than its first-half performance last year. At end-June 2015, the bank’s income stood at just P63.4 million.
“We are on track to hit our income guidance for the year of P228.8 million. Our July 2016 income is at P175.7 million which already exceeds our 2015 fullyear income,” Mr. Sarte said via text message.
Earlier, Mr. Sarte said Robinsons Bank may soon sell insurance products in its branches as it looks to enter the bancassurance business. He said the bank has been receiving queries for possible bancassurance deals, and the bank “is looking at that possibility.”