PSBank eyes 172 branches by end 2009

The Philippine Savings Bank (PSBank) is looking to grow by another eight branches to hit 172 for its network by end 2009. By December last year, it was already operating 164 branches.

“We will continue with our commitment to make banking more convenient to the public,” PSBank president Pascual Garcia III said.

The planned new branches will be located in Puerto Princesa, Palawan; Balanga, Bataan; Butuan City; Parang, Marikina; Taguig; Lipa City, Batangas; and two more.

Three branch applications have already been given approval by the Bangko Sentral ng Pilipinas (BSP), three more have already been submitted for approvals.

After lifting the branch expansion moratorium, monetary authorities have allowed banks to open five new branches at a time before it will entertain five new applications.

Garcia said that PSBank remains aggressive in reaching out to the banking public.

“We will continue our expansion as we would like to reach areas that are under banked. We anticipate stronger domestic activities and demand, especially the consumer lending sector, thus we want to be prepared, and accessible,” the bank president added.

So far, 2008 was a good year for PSBank, especially in the consumer market.

But like most banks, the thrift bank of the Metrobank Group of Companies experienced lower trading opportunities due to the global credit crisis that did not spare the Philippines, as well as the rest of the region.

“There was a significant reduction in trading gains but these was covered by the growth in our core business,” Garcia added.

Last year, PSBank also tapped the capital markets to ensure a strong liquidity position as Asia including the Philippines is expected to remain in the negative to sluggish state in 2009.

“We are preparing for the expected weakening or slow down of the economy as businesses will be challenged. There may be defaults,” he added.

Nonetheless, PSBank estimates that net income for 2008 will be slightly lower than 2007 but will remain in positive territory. He refused to comment on how banks will perform in 2009.

“Our core business has strengthened significantly. Our consumer loan business continues to grow at a healthy 20 percent year on year. Our non-performing loan ratio declined by 20 percent from 2007 levels,” Garcia said referring to its first nine-month performance in 2008.

Capital adequacy ratio (CAR) was placed at 17.6 percent.

“Our strong capital levels will allow us to pursue strategic investment and business growth opportunities to supplement our organic growth,” he said.

PSBank is a key player in consumer banking with its P8.2 billion in capital and P69 billion in assets, end September 2008. Aside from its current 164 branches, it also operates 168 ATMs nationwide.

Meanwhile, the new Bacolod branch is located at the Riverside Medical Center, B.S. Aquino Street, Bacolod City.

“We are very happy to add another branch in Bacolod that will help provide the unique PSBank experience to Bacolodnons,” Jose Vicente Alde, PSBank Branch Banking Group head and senior vice president, said in a separate statement.

 Late last year, PSBank relocated six branches to maximize its services. These are: the Buendia-Edison branch will be renamed PSBank Chino Roces Ave. Extn. with its new address at 2301 Chino Roces Ave. Extn., Makati City; Caloocan branch transfers to Raymundo Bldg., 314 EDSA, Monumento, Caloocan City while PSBank Tabora will relocate to 817 Tabora St., Yangco Market, Divisoria, Manila; PSBank Malolos will move to Paseo del Congreso St., Barasoain, Malolos City, Bulacan; PSBank Lipa will transfer to C. M. Recto Ave. cor R. Soliman St., Lipa City, Batangas; and, PSBank Davao Madrazo branch will have a new address at Cayetano Bangoy St. corner Quirino Ave., Davao City.