July 28, 2016
I tried doing a bp myself. I am doing this for a rural bank which was just acquired and I was asked for advice on how to turn this around. The BSP requires a BP too:
I started getting the inputs Monday, I attended their informal meeting yesterday. I started working on this this morning and was done by 12:30
3 days from input to output of a draft 5 hours to draft What am trying to say: You can do it YOU CAN SUBMIT THE DRAFT
I Background:
The San Francisco bank was recently acquired from its former owners recently, (March) It was established on December 11, 1959 as the 235th rural bank to serve then the growing QC area area. It has because of its managementand owners kept up with the times. It stopped lending for a time, has only about 1.300 depositors
It has been acquired by CBC group headed by dynamic business woman CBC who is engaged in construction, real estate, luxury goods trading and lending investor.
Its management team and Board of Directors: include:
1. Mr. AG President and Director former head of a chemical petrochem plant, and now heads the first solar manufacturing plant in the PHL
2. Mr EV - VP and Director, formerly from from two large commercial bank
3, Mr. EMR - Manager of Operations, formerly cluster head and Senior Manager at a Universal Bank
Its financial is as follows (as of June 30, 2016)
Total Assets: 101,071549
Total Loan Portfolio net 54, 630,154
Total Deposit 67,601,975
Total Stockholders Equity 31,447,315
PNL for the first 6 months of 2016
Income 4,788,013
Expenses 5,072,846
Income/Loss 264,883
II Opportunity Scanning:
Macro:
1. Increasing Philippine Population
This will be the driver for increased consumption (salary loan) and other businesses
2. Political (more peace and order)
The new President is intent on crushing drugs and criminality, and corruption. The peace and order will usher in more investments and business activity.
The govt wants to lift the poor from poverty (we can not legislate that you get out of poverty. You have to work yourself - Duterte)
3. Social
The poorest of the poor about 70% of the population, the CDE segment are short of cash. They get financing from Bombay, and pawnshops where they get 2 to 4% rate per month on the average.
This segment of population need micro insurance, microfinance and other services.
Consumerism is on the rise and even the poor want to have aspirational products and gadget
4. Environmental (business)
1. Many banks have closed due to various financial crisis further upping the demand for financial services
2. Most U Banks and Kbanks are serving the upper and middle market and neglecting the lower market. They have neglected and left out the small lower market being not cost effective.
(We cant quantify these yet)
