PSBank earnings up 19% to P4 billion

MANILA, Philippines — Earnings of Philippine Savings Bank (PSBank) went up by 18.7 percent to P4 billion from January to September compared to last year’s P3.37 billion, driven by higher operating income and better asset quality.

“We remain well-positioned to serve the growing needs of our customers as we approach the final stretch of 2024,” PSBank president Jose Vicente Alde said in a regulatory filing.

“PSBank is gearing up for a more favorable interest rate environment which is seen to further boost consumer loan demand,” Alde added.

During the nine-month period, PSBank’s core revenues grew by four percent to P10.52 billion. Core revenues include the bank’s net interest income, service fees and commissions.

The thrift banking arm of the Metropolitan Bank & Trust Co. (Metrobank) Group saw its operating expenses rising by four percent to P6.91 billion as of end-September this year.

The bank’s loan book increased by 12 percent to P138 billion as of end-September owing to sustained growth in auto, mortgage and business loans.

Amid the double-digit increase in loan portfolio, PSBank’s asset quality improved with a gross non-performing loan ratio easing to 2.8 percent from 3.4 percent, better than pre-COVID levels.

As of the end of the third quarter, total assets amounted to P219 billion while total deposits reached P167 billion.

PSBank’s capital improved to P43 billion with total capital adequacy ratio and common equity tier 1 ratio at 24.2 percent and 23 percent, respectively, both ratios among the highest in the industry and above the minimum level set by the Bangko Sentral ng Pilipinas.

Metrobank earlier reported a 12.4-percent increase in earnings to P35.73 billion from January to September versus last year’s P31.79 billion, driven by asset expansion, improving non-interest income and better asset quality.

Metrobank president Fabian Dee earlier said the sustained growth shows the Ty-led bank’s strong drive to support the growing needs of its clients while preserving the health of their portfolio.

“We look forward to the positive impact of recent regulatory measures on the banking industry alongside improving economic outlook,” Dee said.