MANILA – Robinsons Bank Corp. is allotting P730 million for capital expenditures (capex) this year to fund its digital initiatives, branch expansion and cybersecurity measures.
“[We are alloting] P730 million capex for 2018,” Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte told reporters in a reception held in Bangko Sentral ng Pilipinas (BSP).
Mr. Sarte said the amount will cover the lender’s digital initiatives and branch expansion.
“We have a couple of initiatives that will push or make our digital banking strategies stronger. We’re also focusing in insuring we have digital strategy to support our growth,” Mr. Sarte said, but stopped short of giving more details.
He added that Robinsons Bank is eyeing to end this year with 150 branches, coming from 134 branches in 2017.
“We [now have] 136 [branches], I think. We have six in the pipeline and we should [be] ending at 150 by the end of 2018,” he said last week, adding that the lender will “also spend some money for cybersecurity.”
Asked where will the funds be sourced, Mr. Sarte said in a mobile phone message yesterday: “We expect to have enough cash profit for 2018 to cover the projected capex.”
Earlier this month, the banking arm of the Gokongwei’s JG Summit Holdings, Inc. signed a bancassurance partnership with British life insurer Pru Life UK to bolster the bank’s product offerings.
The three-year partnership of Robinsons Bank and Pru Life UK is expected to generate approximately P40 million to P50 million in premiums in the first year.
Mr. Sarte also noted he is expecting that the bank exceeded P100 billion in assets in 2017.
“In fact, the bank has been growing fast. For 2017, I think our numbers will exceed P100 billion in terms of assets.”
As of end-September 2017, Robinsons Bank ranked as the 19th biggest commercial bank in asset terms with P94.41 billion, BSP data showed.
FUND RAISING
Meanwhile, Mr. Sarte added in a text message that the bank is considering to offer long-term negotiable certificates of deposits (LTNCD) this year.
“We are considering offering LTNCD this year but [it is] still early to confirm since we have to get board approval,” he said in a text message.
He added that the proceeds will be used to support the growth of the bank’s loan business should they proceed to offer LTNCDs.
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
In June 2017, Robinsons Bank raised P4.182 billion from its first-ever LTNCDs, more than the initial P3 billion offer size, on the back of strong demand.
Earlier, Philippine National Bank, East West Banking Corp. and UnionBank of the Philippines announced they will be offering LTNCDs in 2018.
