First, Banpro concentrated on attracting corporate deposits by expanding its lending to this sector. As a result, it has increased its share of the corporate chequing account deposit market to 30%, up from 26% at the end of 2006. On a yearly basis, total deposits grew 14.5%, or the equivalent of $92.7m, with only a minimal increase – 0.3% – in cost of funds.
These funds, and those from Banpro’s maturing government bonds, were allocated to corporate credit, to the credit card portfolio – which grew 75.8% – and to the bank’s liquidity. Overall, credit grew 25% and Banpro achieved the highest market share in the credit card market. This combination increased Banpro’s margin by 1.04%, in terms of assets, to 9.8%.
There has also been product innovation, including a risk-free certificate of deposit for risk-sensitive customers, a premium savings account that combines cheques, a savings account and a debit card, and alternative service channels.
Going forward, the bank is turning its attention to improving customer service by investing in training and staff retention to fuel further growth and shareholder return.
