PSBank income climbs 73%

Publicly listed Philippine Savings Bank (PSBank) reported a net income of P78.5 million for the first semester, a 73-percent increase over year-ago levels.

"The encouraging first semester result puts us well within targets for the year," PSBank president Arthur Ty said. He credited the performance to a substantial improvement in net interest income resulting from a favorable shift in deposit mix in favor of lower costing funds. Deposit portfolio moved up by P451 million during the semester to P13.691 billion. Net interest income was up by P116.8 million or 25.4 percent compared to the same period last year.

Income on loans kept up its upward pace as the loan portfolio steadily rose, while loan loss reserves were aggressively managed in view of economic uncertainties. Net loan portfolio is up by P42 million despite aggressive loan-loss provisioning. Provisions amounted to an additional P86 million for the first semester, up by P53.8 millions or 165.6 percent from a year-ago level. The bank’s new products, Flexiloan and Multipurpose Loan, Home Free Mortgages, as well as its offerings in auto, home, and business capital contributed to market interest and availment.

PSBank’s total resources of P18.987 billion also registered an increase of P182.7 million compared to end-2000 level. Investments and trading account securities of P1.674 billion grew by P350 million due to increased trading activity. PSBank’s capital stands at P3.931 billion, which is substantially higher than the required capitalization for thrift banks.

Ty said that "for the rest of the year," we will keep focused on managing our margins as well as our non-interest income. Simultaneously, we will aggressively pursue other initiatives aimed at expanding our consumer business and improving service delivery."