PSBank profit rebounds to P1.5 billion last year

MANILA, Philippines — The earnings of Philippine Savings Bank (PSBank) jumped by 39 percent to P1.55 billion last year from P1.11 billion in 2020 on improving operating efficiencies and lower provision for soured loans.

The thrift bank arm of Metropolitan Bank & Trust Co. (Metrobank) reported a 22 percent surge in operating income, a three percent decline in expenses on improving operating efficiencies, and lower allocation for potential loan losses.

PSBank president Jose Vicente Alde said the bank’s financial performance in 2021 is a testament of the strength of the bank’s balance sheet and the agility of the organization to quickly adapt to volatile market conditions.

“Our early and proactive efforts to adjust our strategies and operations allowed us to be at the forefront of opportunities as they unfold, “ Alde said.

PSBank said its improved asset quality and effective collection efforts resulted in a significant drop in net non-performing loans ratio to 3.4 percent in 2021 from 5.2 percent in 2020.

Its deposit base surged by 29 percent to P216.8 billion in 2021 from P167.46 billion a year ago.

The thrift bank also reported a rise in loan applications amid the easing of COVID lockdowns with the steady decline in daily infections.

“As the economy opened up and pandemic alert levels downgraded, consumer loan demand started to pick up in the second half of 2021,” the bank said.

Last year, PSBank made available an account onboarding facility through the PSBank Mobile App allowing new-to-bank clients to seamlessly open a savings or prepaid account without the need to go to any of its branches.

Customers are also now able reload their Tollway RFIDs via the PSBank Online and Mobile App, as well as pay their PSBank Loans in all 7-Eleven outlets.

According to PSBank, the reliability and exceptional user experience provided by its digital platforms saw mobile and online transactions nearly quadruple in the last two years.

Alde pointed out that the last two years of the pandemic have highlighted the importance of organizational flexibility.

He said PSBank was able to harness the skills of its people and switch resources to business operations that need more attention, has higher demand or present new opportunities.

“Our digital transformation roadmap launched earlier than the pandemic allowed us to stay ahead of our customers’ requirements for non-contact banking,” Alde said.