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July 13, 2024

CityState Savings Bank grapples with mounting losses

Citystate Savings Bank, owned by the Cabangon family, experienced a significant setback as its losses surged to P96.4 million last year, or more than five times the P17.3 million recorded in 2022, primarily due to soaring expenses.

Despite grappling with rising losses, CSBank reported a 15.5 percent jump in interest income, totaling P309.9 million. This growth was largely buoyed by robust performances in loans and receivables, amounting to P269.02 million, and investment securities, which reached P20.04 million.

Additionally, other income, comprising service charges and fees, demonstrated a robust growth of 26.9 percent.

However, these gains were countered by a surge in expenses.

Interest expenses, in particular, soared by 196.5 percent to P83.26 million, while other expenses expanded by 16.9 percent, reaching P412.5 million.

Despite these challenges, CSBank experienced a positive development in its deposit base. Across its 34 branches, total deposits surged to P4.3 billion, with savings deposits constituting the majority at P2.88 billion. Moreover, time and demand deposits witnessed a substantial uptick of P635.2 million.

Looking ahead to 2024, CSBank has outlined strategic initiatives to revamp its service delivery system, enhance existing products and services, and broaden its market presence through an assertive marketing approach.

The bank aims to prioritize lending to small and medium-sized enterprises and jewelry loans while investing in a highly skilled workforce.

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