PSBank posts 12% profit hike to P2 billion

MANILA, Philippines -  Philippine Savings Bank (PSBank) reported a net income of P2 billion in 2011, a 12-percent increase from P1.8 billion in 2010, the bank said in a statement yesterday.

Gross loans grew nine percent while deposits rose 16 percent.

The nine-percent expansion in gross loans was carried by the strong growth in the auto and mortgage markets, by 13 percent and 10 percent.

“The higher loan portfolio was posted in spite of the 3.2-percent decline in passenger sales and the interest rate competition on mortgage loans,” Perfecto Ramon Z. Dimayuga Jr., senior vice president and chief finance officer, said.

Investments in government securities, meanwhile, grew 18 percent to P31.1 billion.

Assets grew to P120.3 billion last year from the P104 billion in 2010.

The strong deposit growth was attributed to the aggressive expansion of the bank’s branch and ATM network.

Last year, the thrift bank of the Metrobank Group put up 20 branches to bring its total network to 200 branches.

PSBank also rolled out 126 ATMs last year to bring its total network to 505. Of the new installations, 105 were offsite locations with 43 ATMs installed in LRT stations, and another 15 in MRT stations.

Meanwhile, its non-performing loan (NPL) ratio fell to 3.1 percent, or nearly half of the 6.2 percent average ratio of the thrift bank industry.