Ten banks affiliated with the Legacy group of companies have increased their combined capital from P.250 billion to P1.95 billion or an increase of P1.7 billion as of June 2008.
With 35 branches nationwide, the Legacy-affiliated banks are Rural Bank of Parañaque, Rural Bank of San Jose (Batangas), Rural Bank of Carmen (Cebu), Rural Bank of Calatagan (Batangas) otherwise known as Dynamic Rural Bank, Rural Bank of DARBCI, Rural Bank of Kananga (Leyte) otherwise known as First Interstate Bank, Rural Bank of Minglanilla otherwise known as Rural Bank of East Asia, Philippine Countryside Rural Bank, Pilipino Rural Bank and San Pablo City Rural Bank.
Picking up from profitable operations last year, the group had embarked on aggressive loan collection and disposal of acquired assets during the first half of the year. The systems average of past due collection is 12 percent. Likewise, the average past due collection of the ten banks for the same period was only 5.42 percent.
Legacy Consolidated Plans Inc. president Carol Hinola said that improved liquidity has enabled the banks to expand their micro-finance programs.
To liquefy the real properties acquired by the ten banks, disposal through sales contract receivables with real estate developers were implemented.
Of the total P4.916 billion in real and other properties acquired, 61.68 are already under sales contract receivables. She pointed out that the banks have granted secured motorcycle loans to qualified tricycle drivers and owners association members in a tie-up with Legacy Motors.
Combined assets of the banks stood at P17.8 billion consisting of P2.8 billion cash and near-cash equivalent, P7.5 billion of loan receivables and P7.5 billion of acquired and other assets.
A strong liquidity position of the banks is shown by its quotient of liquid assets to deposits with the consolidated liquid ratio of 17.06 percent.
The banks total deposit liability is P16 billion.
Hinola stressed that the P1.7 billion capital infusion consisting of deposit subscription of both common and preferred stocks has raised the capital adequacy ratio of the banks to 10.6 percent.
This was enhanced further by effective funds management which resulted in the average return on assets at 1.71 percent and average expense to income ratio of 88.6 percent. As the preference period, the average capital ratio is 10.60 percent.
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