PSBank earnings up 18 percent to P2.56 billion

MANILA, Philippines — The earnings of Philippine Savings Bank (PSBank) grew by 18 percent to P2.56 billion in the first half from P2.17 billion in the same period last year driven by strong demand for consumer loans and improved credit quality.

PSBank president Jose Vicente Alde said the bank has achieved steady growth in its core business by focusing on customer-centricity and adopting a proactive sales approach in their strategy.

“Apart from providing top-notch quality service to our patrons, we ensure that the products we offer can pave the way for Filipinos to achieve their financial goals and aspirations,” Alde said.

The thrift bank arm of Ty-led Metropolitan Bank & Trust Co. (Metrobank) booked a higher return on equity of 12.5 percent in the first semester versus last year’s 11.4 percent.

Net interest income inched up by four percent to P6.08 billion. The bank’s operating income, which includes service fees, commissions and other income, stood at P7.74 billion in the first half. Operating expenses rose by five percent to P4.62 billion.

 The loan book of the country’s largest thrift bank increased by 10 percent to P130 billion as of end-June from last year’s P120 billion, primarily driven by the 18-percent jump in auto loans owing to the steady influx of demand for vehicle financing.

 With steady loan portfolio expansion, asset quality further improved as the lender’s non-performing loans ratio declined to 2.9 percent as of June from 3.5 percent a year ago.

 “We are hopeful that the positive performance in the first half will be sustained for the rest of the year,” Alde said.

The total assets of PSBank amounted to P220 billion as of end-June, as total deposit and capital reached P170 billion and P42 billion, respectively.

PSBank’s total capital adequacy ratio stood at 24.3 percent and common equity tier 1 ratio at 23.2 percent, both well above the minimum level set by the Bangko Sentral ng Pilipinas.

 To date, PSBank’s nationwide network has already reached 250 branches and 557 in-branch and offsite automated teller machines.

Metrobank, owned by the family of the late taipan George SK Ty, controls more than 88 percent of PSBank. Its net income increased by 12.9 percent to P23.6 billion in the first semester from a year-ago level of P20.9 billion fueled by robust asset expansion, stable margins, well-managed cost growth and healthy asset quality.