AsiaLink Finance Corp., an online financing firm, aims to expand its network across the country by the end of this year. The company plans to increase its branches from 118 sites to 160, representing a 35% growth, driven by a surge in profits and strong demand for used vehicles.
According to AsiaLink, its net income increased by 43% to P2.65 billion in 2022 compared to P1.85 billion in the previous year. Its top line also grew by 44% to P3.1 billion from P2.2 billion, while the company’s asset value rose by 39% to P11.367 billion from P8.15 billion.
Eileen Mangubat, the general manager of AsiaLink, stated that the company has experienced exponential growth as the effects of the COVID-19 pandemic recede, allowing various industries to seek financing to reinforce or expand their operations. She also mentioned that there has been a rising demand for second-hand cars in the Philippines, where AsiaLink has established itself as a niche player in terms of financing.
Expanding Footprint
Mangubat also highlighted that the company has opened additional branches, hired more salespeople, and partnered with more car dealers as part of its strategy to capitalize on its surging performance. Currently, AsiaLink has 118 branches and over 1,000 employees nationwide. By the end of this year, it aims to have a total of 160 branches.
In addition, AsiaLink has secured additional funding of P2 billion from its credit lines with several financial institutions, including the Development Bank of the Philippines, Cebuana Lhullier, Small Business Corp., Philtrust Bank, and Veterans Bank.
AsiaLink’s chief executive, Robert Jordan Jr., emphasized the importance of nonbank financial institutions (NBFIs) in the Philippine lending industry. He mentioned that NBFIs, like AsiaLink, account for nearly half of loans extended each year to micro, small, and medium enterprises (MSMEs). According to data from the Asian Development Bank, loans to MSMEs by microloan organizations, pawnshops, and other NBFIs reached $4.9 billion in 2020 across the region, surpassing the $10.3 billion in loans granted by banks.
In 2022, AsiaLink released a total of P10.5 billion in loans, marking a 25% increase compared to the previous year. These loans were granted to approximately 24,000 clients, with 70% of them being MSMEs.
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