TOTAL assets of Sun Savings Bank continued to grow significantly in the second quarter of 2022, as it reached a new record level of P2.64 billion, representing a growth rate of 27 percent over the year-ago level of 2.07 billion. The growth rate of 27 percent was significantly more than double that of the thrift bank industry which grew by 4.3 percent during the same period.The growth in assets was again accounted for primarily by the growth of its loan portfolio which increased by 34 percent to 1.96 billion, as compared to last year. This is because the bank continued to support Department of Education (DepEd)teachers for their expanded loan requirements to rebuild or repair their homes damaged by Typhoon Odette (Rai).The quality of the loan portfolio also showed significant improvement as the non-performing loan or NPL ratio slid down by almost half to only 1.8 percent, compared to last year’s level of 3.4 percent. The bank continued to remain highly liquid as its minimum liquidity ratio was 36.33 percent, more than double the ratio of 16 percent required by the BSP.Funding this tremendous growth in assets was the increase in savings and time deposits which grew by 11 percent to 1.6 billion, as compared to last year. The bank continued to attract deposits by offering more rewarding rates for time deposits, in particular the seven percent per annum tax-free rate for five years and one-month time deposits (TD5). The seven percent pa tax-free rate was at par with the interest rates on taxable corporate bonds recently offered by large corporations like Ayala Land and Petron. Further, at seven percent per annum, the TD5 rate was higher than the average inflation rate of 4.7 percent for the first seven months of 2022, thereby protecting and enhancing the purchasing power of the hard-earned funds of depositors.It is also noteworthy that the Land Bank of the Philippines (LBP) and the DBP have been highly supportive of the efforts of Sun Savings to assist DepEd teachers with their financial needs. LBP granted the bank a P300 million term loan, followed by DBP which also granted a similar P200 million term loan, a testament to the solidity and sound management of the bank, by the two of the country’s largest universal banks. These five-year term loans create a very stable funding base for the bank’s lending activities.The growth in the total loan portfolio resulted in Net Interest Income after interest expenses, growing by 57 percent to a record level of P97 million as compared to the same period last year. Hence, Net income after tax inevitably increased by 153 percent to P18.4 million as compared to last year of only P8 million.In the second semester, the bank anticipates that total assets will continue to grow at a rapid pace as Deped teachers’ loan demand is expected to remain high as face-to-face classes resume. Supporting the education of the Filipino youth will continue to be a fundamental priority of the government as an educated young population will result in a demographic dividend in the coming years, that will elevate the country to high-income level status. DepEd teachers will continue to be highly valued by the government and their salaries and benefits are expected to increase in the coming years. By 2023, as mandated by the salary standardization law, DepEd teachers at the starting level will be receiving a salary increase of P1,500 per month thereby increasing their monthly gross pay to P29,000. (PR)