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REPORT TO SHAREHOLDERS

We are proud to report to you that our bank achieved remarkable results in 2012.  As we carried out our commitment to address the needs and interests of our member-cooperative, the whole cooperative sector and the general public as well, the bank focused on maintaining its sound financial condition resulting in impressive profitability, liquidity and capital adequacy standings.  The bank maintained its standard according to the standard set by the banking industry. 

 Results of Operation:

 Deposits:

 The bank sustained a high level of liquidity resulting from support endowed by members through deposits which accounted for 99% of the P751 million total deposits. 

 Lending Operation:

 Our goal is to protect the investments of our members and we can achieve this by providing quality credit and not just to grant loans to borrowers but to do what is right for them by;

 

- Pricing their loans fairly;

- Give them good and reasonable loan package;

- Grant loan only if it provides benefit to the customer;

- Not lend to customers if we believe they cannot make loan payments.

  Capital:

 We believe that capital is very important attribute of a financial company.   Capital measurements show how much a bank depends on borrowing and how much “cushion” it has to absorb losses.  For the year ending 2012, the bank’s capital amounted to P345 million which made the bank rank first in terms of capitalization among the cooperative banks in the country.

  Net Income:

 The year was a banner year for the bank in terms of profitability, as Net Income reached an unprecedented level of P26.76 million.  This is 47.76% higher than the net income of 2011.

 Achievements realized within the year were as follows:

 1.      Ground breaking and construction of the new head office building;

 2.      Launching of new product lines, such as the Teacher’s Loan; and

 3.      Establishment of the Tagum Satellite Office.

  Prospects for the year 2013 remain bright as the economy is expected to grow by 6%.  Loan growth will be buoyed by strong consumer demand amidst low interest rates.  The bank’s lending activity will be heavily skewed in favour of loans to the cooperative, consumer and commercial middle market segments. Deposit taking thrust will diversify into the retail market.  Mergers and consolidation will be actively pursued to achieve better efficiency and economies of scale. Efforts will be exerted to dispose of Real Properties Acquired as the real estate market still remains bullish.  Plans to provide Checking Account, ATM and Cash Card services to members in a highly liquid market are being revisited.

  To our customers, thank you for the honor and pleasure of serving you.  You are the reason of our existence and struggle to be the best in our field.  

  A very special and sincere thanks to the Board of Directors for their continuous support and to the officers and staff, for your dedication, commitment and hard work.  Once again, you’ve proven that service is our business.

 

 

 

FINANCIAL HIGHLIGHTS

 

 

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