MANILA, Philippines — The earnings of Philippine Savings Bank (PSBank) grew by 18 percent to P2.17 billion in the first half of the year from P1.84 billion in the same period last year on higher loan releases, improved credit quality, as well as gains realized from productivity and efficiency initiatives.
PSBank president Jose Vicente Alde said the continuing uptrend in consumer loan releases, improvement in credit quality, and gains realized from productivity and efficiency initiatives further strengthened PSBank’s platform for sustainable earnings in the post pandemic era.
“The bank, through its recalibrated strategies and focus on enhanced customer experience, was able to benefit from the continued expansion of the economy and the sustained growth in consumer demand for the first six months,” Alde said.
The thrift bank arm of Ty-led Metropolitan Bank & Trust Co. (Metrobank) booked a higher return on equity of 11.4 percent in the first semester of the year versus the 10.4 percent recorded in the same period last year.
Core revenues, composed of net interest income from loans and investments including fees, inched up by eight percent to P6.8 billion from P6.3 billion, while operating expenses slipped by two percent as a result of ongoing cost optimization projects.
The loan book of the country’s largest thrift bank went up by nine percent to P120 billion as of end June, primarily driven by the 21 percent jump in auto loans owing to the steady influx of demand for vehicle financing.
Despite the portfolio increase, PSBank’s gross non-performing loans (NPLs) dropped by 11 percent, translating to a lower NPL ratio of 3.5 percent, better than levels recorded before the COVID-19 pandemic.
“We are hopeful, despite the external headwinds, that this can be sustained for the rest of the year,” Alde said.
The total assets of PSBank amounted to P235 billion as of end June this year, as its deposit base increased to P187 billion.
The bank’s capital base improved by seven percent to P39 billion, with total capital adequacy ratio (CAR) at 24.6 percent and common equity tier 1 ratio at 23.7 percent, both well above the minimum level set by the Bangko Sentral ng Pilipinas (BSP).
Metrobank owned by the family of the late taipan George SK Ty controls more than 88 percent of PSBank.
The profit of Metrobank jumped by 34.1 percent to P20.9 billion in the first semester of the year from a year-ago level of P15.83 billion fueled by the bank’s asset expansion, higher margins, and healthy fee income growth as it kept its asset quality stable.