Sun Savings Bank strides forward

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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
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
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)

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