Agri-based economy remains strong in Mindanao

A leader in rural banking sees agri-products to remain strong in the agri-based economy of Mindanao this year despite the global crisis.

One Network Bank (ONB) president Alex Buenaventura said the strong agri-based economy and liquid environment support the high deposit generation targets of the bank's branches especially in the countryside.

Given such upbeat outlook, he said they project a 19-percent increase of their targets this year of P288 million as against their actual Net Income After Tax (NIAT) in 2008 of only 242 million.

ONB's deposit liabilities are raised by 30 percent increase or P7.8 billion as against the 2008's actual of P6.0 billion.

He said they also increased their target for loans at 36 percent or about P8.0 billion as against the P5.9 billion actual loans in 2008.

Buenaventura said although there will be many challenges this year, rural banking in Mindanao will continue to experience growth.

He attributed this to the good prospects in agriculture particularly banana, pineapple, coconut, rubber and palm oil.

Buenaventura also said their banking operation remains strong due to Department of Education salary loans and the One Banana Program growers' loans.

Meanwhile, he said the rural banks play a niche in service of small depositors and borrowers in the countryside.

He said as they continue to improve on their services they are also able to bring their clients to economic opportunities in the financial mainstream.

He said they have given small accounts access to projects with solid fundamentals and services which they thought can only be possible in urban centers.

With 72 ONB branches, he said they have given more Mindanaoans the means to improve their lives.