The Metrobank group’s thrift banking arm, Philippine Savings Bank, ended last year with a record-high net profit of P2.3 billion, as gains in its investment portfolio added to a steady stream of earnings from core lending activities.
In a disclosure to the Philippine Stock Exchange on Thursday, PSBank said its net income grew by 14.1 percent last year, translating to a return on equity of 17.6 percent.
PSBank president Pascual Garcia III said: “2012 was a banner year for PSBank. Our nation’s 6.6-percent economic growth coupled by our improved market penetration contributed to exceptional increases in loan releases especially for the consumer segment. We saw a 36- percent increase in consumer loan releases driven by both the auto and mortgage businesses.”
The bank said it had generated P5.7 billion in net interest income and P3.7 billion in other operating incomes last year. The net interest income level in 2012 was almost the same as that in the previous year, while other operating incomes was about triple the 2011 level of P1.24 billion.
Like most of its banking peers, PSBank reaped huge trading gains for 2012 as interest rates fell to record-low levels. The Bangko Sentral ng Pilipinas slashed key interest rates by a total of 100 basis points last year.
PSBank expanded its loan book by 21.4 percent last year to P73.5 billion, citing record gains for its top loan products on account of increased consumer confidence and sustained economic growth. Auto loans rose by 24.3 percent from year-ago level while mortgage loans expanded by 19 percent.
Operating expenses were moderate, rising by only 5.1 percent even with the bank’s continued investments in branches and automated teller machines.
Total assets at end-2012 stood at P115.53 billion, based on the bank’s latest statement of financial condition. Deposits amounting to P94.62 billion funded earning assets.
Capital stocks amounted to P5.22 billion at end-2012 but including retained earnings and other capital accounts, total stockholders’ equity stood at P14.06 billion.
In the first quarter of 2012, the bank issued P3 billion worth of subordinated debt qualifying as tier 2 or supplementary capital, bringing its capital adequacy ratio to 17.14 percent.
PSBank opened 20 additional branches last year, bringing its branch network to 220. PSBank also expanded its ATM network and now has 532 onsite and offsite ATMs all over the country.
As of December 2012, the Bank’s ATM network was the sixth-largest among all Philippine banks while its branch network was now the ninth-largest.
PSBank was recognized for the second consecutive year by The Asian Banker magazine as one of the top 10 strongest banks in the Philippines.