PSBank posts 29% profit hike

MANILA, Philippines - Philippine Savings Bank, the thrift unit of the Metrobank Group, posted a record 29 percent increase in its net income to P2.9 billion in 2013 from P2.3 billion in 2012.

PSBank president Vicente Cuna attributed the record-breaking performance of the publicly-listed thrift bank to the aggressive growth of its loan portfolio as well as gains from the sale of its investment portfolio.

Last year’s profit translated to a return on average equity of 18.72 percent, he said.

The bank’s gross loan portfolio grew 17 percent to P85.9 billion, with the bulk of the increase coming from consumer loans.

Total deposits likewise posted a notable increase of 13 percent year-on-year, surpassing the P100-billion level to end the year at P106.5 billion.

On the other hand, the bank’s net non-performing loan (NPL) ratio improved to 0.2 percent while its NPL coverage ratio is in excess of 100 percent.

With the expansion in PSBank’s core assets, net interest income increased 18 percent to P6.7 billion in 2013 from P5.7 billion the previous year.

Total gross revenue posted an 18 percent growth to P14.7 billion this year from P12.4 billion in 2012.

“In 2013, we focused on expanding our core assets to sustain our growth in the coming years and we are happy with the results. Our auto and mortgage business continue to strengthen, backed up by an aggressive retail deposit campaign,” Cuna said.

The bank’s capital adequacy ratio remains strong at 16.9 percent as of end-2013, well above the central bank’s minimum of 10 percent.

PSBank’s distribution network includes 224 branches and 551 ATMs nationwide.