Thrift banks as a whole barely make profits these days but the listed thrift unit, Citystate Savings Bank, posted a 114-percent growth in net income in the first ten months.

This makes its shareholders happy considering the industry as a whole made money that was not even one percent higher in the first half.

The actual members were not reported but based on data obtained from the Bangko Sentral ng Pilipinas, Citystate Bank posted decent profits during the period in a banking sector that hasn’t been doing well.

In September, Citystate reported a 64-percent rise in deposits that was accompanied bya 70-percent growth in lending.

Bank lending was a whole at the moment is less than 6 percent.

Citystate’s nonperforming loans (NPLs) contracted in October to just 1.84 percent of portfolio from 1.86 percent previously.

This explains the expansion in net income as resulting from accelerated lending activities while keeping the rate of loan defaults down.

“The low NPL ratio improved as a result of strong collection efforts and loan restructuring,” the bank said in a statement.

As part of the bank’s thrust to pursue its branch expansion plans, Citystate Bank currently has a total branch network of 15 and will be opening a branch in Muntinlupa before the end of the year, and another in Caloocan by January next year.

The bank is determined to venture into foreign currency deposit unit (FCDU) transactions and wealth management after the recent approval by the Bangko Sentral ng Pilipinas of its FCDU and trust licenses.

The bank recently obtained BSP approval for the payment of cash dividends and the issuance of stock dividends on common shares.

The cash dividend amounts to P1.9 million while stock dividend is equivalent to 10 percent of its total issued outstanding capital stock. Citystate Bank’s shares were being traded at the Philippine Stock Exchange at P20.50 per share.

Citystate Savings Bank is owned and operated by a consortium that includes Fortune Insurance Group, one of the country’s leading insurance firms, and foreign investors in Citystate Management Group Holdings Pte Ltd of Singapore that manages insurance and real estate business organization throughout Southeast Asia

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Source: BUSINESS WORLD (Jun Vallecera)

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