Profit climbs 20% in Q3

MANILA, Philippines — Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, posted a higher net income of P813 million in the third quarter, backed by the strong growth in its core business.

In a disclosure to the Philippine Stock Exchange (PSE), PSBank said its net income in the third quarter was 20.1 percent higher than the P677.09 million recorded in the same period last year.

This brought the bank’s year-to-date net income to P2.2 billion, up by 8.4 percent compared to P2.03 billion in the same period of 2018.

According to PSBank, its strong performance during the third quarter was supported by a 9.3 percent growth in its core revenues, composed of interest income and fee-based income.

Its earnings translated to an annualized return-on-assets of 1.2 percent.

The bank also saw a 6.4 percent expansion in its loans and receivables, reaching P162.1 billion from P152.4 billion last year, fueled by its auto and mortgage loan offerings.

Despite the growth in its lending activities, PSBank said asset quality also remained well-managed, with non-performing loans ratio at 2.7 percent.

Its capital adequacy ratio stood at 17.4 percent, while its common equity tier 1 ratio was at 16.6 percent, both above the minimum required level set by the central bank.

On the funding side, PSBank said low-cost deposits rose by 6.7 percent to P56.9 billion from P53.3 billion, while total deposits went down by 8.4 percent to P181.1 billion from P197.7 billion in the same period last year. This happened as the bank continued to re-balance its funding mix to focus on retail and alternative sources.

“The encouraging results we’ve reaped are underscored by a bank-wide mindset built on purposeful innovations, enhanced operational efficiencies, and firm decisions backed by data analytics and better understanding of our customers. As we enter the homestretch of 2019, we are even more motivated by these positive developments, and continue to be inspired by our achievements and recognitions,” PSBank president Jose Vicente Alde said in a statement.

PSBank currently has a network of 250 branches and 559 automated teller machines nationwide. 

Earlier this year, PSBank released the newest version of its PSBank mobile application. Aside from a fresh look, the upgraded app is packed with new functionalities and services, including PSBank PaSend remittance service and Mobile Check Deposit.