MANILA, Philippines - Thrift bank Philippine Savings Bank (PSBank) posted an 18 percent rise in net income in the first three months, driven by higher core revenues.
In a statement over the weekend, PSBank said net income jumped to P511 million in the first quarter from P434.8 million a year ago.
PSBank attributed the growth to the positive performance of core revenue, is composed of net interest income and fee -based earnings, combined with operational efficiency.
Total loan portfolio grew 13 percent to P134 billion from P118 billion, propelled by a strong demand in the consumer lending segment, particularly auto and mortgage loans.
“The bank’s asset quality remained healthy and in check with net non-performing loans (NPL) ratio steady at 1.1 percent and NPL coverage ratio increasing to 86 percent from 84 percent a year ago,” PSBank said.
Moreover, deposits posted a 25 percent increase to P170 billion in the third quarter compared to P137 billion in the same period last year, as low cost funds grew 18 percent year-on-year.
Total resources expanded 17 percent to P205 billion from P175.1 billion in the previous year.
The bank’s Tier 1 and total capital adequacy ratios stood at 11.1 percent and 14 percent, respectively. Both are above the minimum required level set by the Bangko Sentral ng Pilipinas (BSP).
PSBank president Vicente Cuna Jr. said the bank’s financial growth was driven by its strategy of expanding its core business products.
“We managed to maintain our momentum in pursuing our strategy of expanding our core businesses by making our products available online, making our channels more accessible, and processes more efficient to achieve customer satisfaction and offer the best customer experience to our clients,” Cuna said.
“This was clearly evident in the first quarter year-on-year growth of our auto loans, which outpaced the industry’s performance during the same period,” he said.