PSBank lending jumps 18% to P47.3 billion in first 9 months

MANILA, Philippines - Philippine Savings Bank (PSBank) boosted its lending by 18 percent in the first nine months to P47.33 billion, even surpassing its loan portfolio level of P42.2 billion for the whole of 2008.

The thrift bank of the Metrobank Group of Companies also put up a record 100 automated teller machines (ATMs) in the Metro Manila area during the period.

Bank officials said they are bullish about the prospects of expanding loans to record levels with the introduction of a ‘rebate’ system on existing and future loans.

“We are already ahead of 2008 (loan portfolio), and the new rebate system on loans will help the bank get a bigger share of the market,” Rolando A. Rodriquez, PSBank executive vice president, said in a press briefing yesterday.

Rodriquez said they are confident of expanding further in 2010 as the Philippine economy is expected to grow even faster.

Forecasts by the National Government and other international funding agencies point to the economy growing between 2.5 to 4.5 percent next year.

In the first nine months of 2009, PSBank’s auto loans grew 12 percent while mortgage and personal loans were higher by 10 percent and eight percent, respectively.

Auto and mortgage loans account for nearly 70 percent of PSBank’s total loan portfolio, with the remaining taken up by the small and medium enterprises (SME) and personal loans.

PSBank said it expects existing borrowers to remain with them, and at the same time attract new borrowers with its rebate system for loans.

Called Prime Rebate, PSBank will start rewarding its term loan borrowers that make advance payments for loans or have excess loan payments.

“The cost of the rebate will depend on the interest rate on the loan,” Rodriquez said. For the borrower, it will mean lower cost for loans.

For the bank, it could mean lower earnings from its term loans but a huge potential for its borrower base expanding. It will likewise mean constant fluidity as a constant flow of loans also means a constant flow of payments.

Meanwhile, PSBank will continue to open branches next year as well as deploy offsite ATMs.

“We have deployed more offsite ATMs this year than in anytime before. We are the only thrift bank with the most visible ATMs,” the bank official said.

Most of the offsite ATMs are deployed in LRT and MRT stations, aside from shopping mall and major groceries.

PSBank operates 170 branches nationwide.

It reported a net income of P893 million in the first nine months of 2009, 23 percent more than the P725 million recorded in the same period last year. 

Deposit base totaled P69.93 billion, or 24 percent higher than the P56.21 billion posted in the same time last year.