PSBank earnings flat at P1.1B

MANILA, Philippines - Philippine Savings Bank (PSBank), the thrift bank arm of Metropolitan Bank & Trust Co. (Metrobank), recorded a flat earnings growth in the first half of the year as losses from trading of securities wiped out higher earnings from interest and not-interest income.

In a report to the Philippine Stock Exchange (PSE), PSBank senior vice president and chief finance officer Perfecto Ramon Dimayuga Jr. said the bank’s earnings reached P1.13 billion from January to June compared to P1.128 billion in the same period last year.

The bank reported its interest income went up 7.7 percent to P5.33 billion in the first half of the year from P4.95 billion in the same period last year, while interest expense grew 9.6 percent to P1.25 billion from P1.14 billion.

PSBank’s income from service fess and commission increased 14.7 percent to P647.02 million from P563.98 million.

The bank’s other operating income fell 16.7 percent to P581.88 million in the first half of the year from P698.81 million in the same period last year after it incurred P3.51 million losses from the trading of securities from last year’s gain of P203.17 million.

Dimayuga said the thrift bank remained focused in strengthening its core business for long term sustainability.

Its loan portfolio registered a double-digit growth of 15.9 percent to P107.2 billion in end June this year on the back of the 28.4 percent rise in consumer lending particularly auto and housing loans.

He added the bank made further headway in improving support infrastructures to maximize the potential of its branch distribution network for loan acquisitions.

Apart from its unparalleled quick processing turnaround time commitments, Dimayuga said the branches were able to offer added incentives to eligible borrowers in the form of free 1st year comprehensive insurance, chattel mortgage fees and gas allowance for Auto Loans as well as free appliance packages for Home Loans.

On the other hand, PSBank was able to consistently manage asset quality with net non-performing loans ratio kept low at 1.2 percent even with the growth in its loan portfolio.

The  bank’s total deposits went up 5.3 percent to P119.1 billion as its deposit-taking initiatives revolved around acquiring new customers; stimulating increase in account balances; and aggressive cross-selling to include off-book product lines.

PSBank’s total resources stood formidable after increasing 5.7 percent to P149.1 billion.