PSBank not keen on foreign partner yet

The Philippine Savings Bank (PSBank), the thrift bank subsidiary of Metropolitan Bank and Trust Co. (Metrobank), is not keen on looking for a strategic foreign partner, a ranking PSBank official told The STAR yesterday.

"Not at all. We don’t need one (strategic foreign partner)", a PSBank official, who requested anonymity, said.

Though the official admitted that the bank has been affected by the current peso depreciation and high interest rate regime, he said they still manage to operate within their means. "Our loan portfolio has slightly gone down. But, we continue to lend to able borrowers," the official said.

According to the official, the savings bank has designed several measures to cushion them from the effects of the current peso fall and raising interest rates. "We look for ways to protect our operation," the official said, declining to give details of the planned measures.

PSBank’s position was shared by its mother bank, Metrobank, which said that "there are no talks yet with potential strategic partners."

Metrobank executive vice president Alfredo Javellana said "nothing is going on at the moment with regard to the entry of a strategic partner into the group."

"With this situation who would be interested," Javellana said, adding though that this situation makes the bank’s products and services more competitive.

Javellana said they are not closing their doors to potential strategic partners but at the moment they just want to remain as is. "We are open, that’s all," he said.

These statements came after a number of foreign banks decided to increase their exposure in the local banks they have stakes. Recently, Banco Santander acquired 100 percent of Banco Santander Philippines Inc. The same was the case with Maybank of Malaysia and ABN-AMRO, which bought majority stakes in Maybank Philippines Inc. and ABN-AMRO Philippines, respectively.

Aside from these, HSBC and Standard Chartered have decided to expand operations in the Philippines. HSBC bought majority stake of PCIB Savings while SCB is still scouting for another bank to acquire.

According to the Metrobank official, they are likely to review their financial positions and look at the possibility of adjusting their yearend targets.

"It’s hard to say with this volatile situation. We will see," he said, admitting that the bank’s non-performing loans (NPL) level "is still creeping upward but is under control."