PSBank expects to surpass income target for 2003

Philippine Savings Bank (PSBank) is optimistic it would be able to surpass its net income target for the whole of 2003 as the economy shows positive growth signs.

Earlier, PSBank officials said they trimmed their growth targets for this year from 10 percent to 12 percent.

"We will beat that," Pascual M.Garcia III, PSBank president said in a formal press launch of PSBank Flexi Credit Line yesterday.

PSBank’s net income recorded a notable 72.8 percent growth to P302 million in 2002 from P174.7 million in 2001.

In 2000, the bank’s net income was recorded at P120 million. For this year, PSBank is expecting to post a net income of over P330 million.

In the first nine months of 2003, its loan and deposit portfolio grew by 20 percent. Preliminary data showed the bank had already surpassed its full-year income targets by 24 percent as of October this year.

Consumer or personal lending grew by over 20 percent while loan portfolio for small and medium enterprises(SMEs) sector continued to expand.

Pascual said consumer lending accounted for over 60 percent of its total loan portfolio. "We have been gaining market share," he stressed.

PSBank’s non-performing loan (NPL) ratio to total loan portfolio remained at a 6.25 percent level versus the thrift banking industry average of 12 percent to 13 percent. In absolute figures, the bank’s non-performing loans stood at P1.2 billion as of end September.

PSBank will invest P80 million for 18 new branches to bring its total branch network to 121 by yearend.

Another 50 ATMs will also be added to its present number of 36.

PSBank is the thrift and savings bank arm of the Metropolitan Trust and Banking Corp. (Metrobank), the country’s biggest commercial bank in terms of assets.

It is considered the second largest thrift bank in the country.

Last year, PSBank’s total resource grew to P28.1 billion, or 33 percent better than the P21.2 billion in 2001. Total deposits also surged to 35 percent to P5.8 billion last year.