PSBank earnings slip to P1.73 B

MANILA, Philippines - Earnings of Philippine Savings Bank (PSBank) slipped 7.6 percent in the first nine months due to lower non-interest income as well as the absence of non-recurring income.

The thrift banking arm of Metropolitan Bank & Trust Co. (Metrobank) booked a net income of P1.73 billion from January to September, P143 million lower compared to P1.88 billion in the same period last year.

PSBank said last year’s earnings included one-time gains from the sale of its interest in Toyota Financial Services Corp. (TFSPC) and Victorias Milling Co. (VMC) in relation to Basel III preparation.

“The decrease in net income was attributed to higher other operating income in 2014 due to the significant gains on the sale of bank’s equity investments in TFSPC and VMC,” the bank said.

The bank’s interest income went up 7.82 percent to P8.12 billion in the first nine months from P7.53 billion in the same period last year as earnings of deposits with the Bangko Sentral ng Pilipinas (BSP) surged 229 percent, while income form loans and receivables increased by 12.2 percent.

PSBank’s gross loan portfolio grew 17.6 percent to P111.8 billion primarily led by the robust growth in auto and mortgage loans. Its consumer loan bookings jumped 29 percent.

Even with the growth in its loan portfolio, PSBank kept its non-performing loans (NPL) ratio low at 1.1 percent. As of end September, NPL coverage was at 84 percent.

Total deposits inched up 3.6 percent to P127.1 billion as low cost funds rose 19 percent as it focused on new customer acquisition and active cross-selling anchored on a stronger commitment to provide the best customer experience to clients.

The bank’s other operating income plunged 42.3 percent to P883.389 million in the first nine months from P1.53 billion in the same period last year after it recorded a net loss of P37.11 million from trading and securities.

PSBank’s miscellaneous income fell by 48.7 percent to P399.15 million from P777.72 million due to the sale of the bank’s equity investments in TFSPC.