In H1, PSBank booked unprecedented gains
Philippine Savings Bank (PSBank) chalked up a net profit of P2.9 billion, more than double the P1.4 billion posted in 2012, on higher interest earnings and trading gains early in the year.
The thrift banking arm of the Metrobank group attributed the sharp increase in net profit to the expansion of its loan portfolio and gains from its investment portfolio.
Philippine Savings Bank’s net income in the first half of the year already exceeded the P2.3 billion it registered for the whole of 2012.
The bank earlier announced a net profit of P2 billion in the first three months—a record high. This suggested that the bulk of the profit seen in the first half came in during the first quarter.
PSBank had booked trading gains amounting to P3 billion in the first quarter—up from the P1.7 billion reported in the same period last year.
In the first semester, core businesses likewise expanded, with net interest income rising by 13 percent year-on-year to P3.2 billion.
The bank said its interest income from loans had risen by 16 percent due to the expansion of its lending activities.
PSBank’s gross loan book went up by 21 percent to P81 billion as record-low interest rates and improving consumer sentiment continued to drive loan demand.
“We are experiencing strong demand for both auto and mortgage loans. New loan releases surged by 45 percent from last year. If this pace holds up in the second half, our loan portfolio may be 22-24 percent higher than the previous year,” PSBank president Vicente Cuna said in a statement.
The bank reported that asset quality remained healthy despite an increase in lending activities. Net nonperforming loan (NPL) ratio to total loans stood at 0.3 percent. The bank also set aside additional loan provisions amounting to P1.1 billion during the period, thereby increasing NPL coverage to 107 percent.
The bank also reported that declining interest rates in the second quarter had allowed it to recognize opportunities from its investments in government securities. PSBank posted a 16-percent growth in its income from service charges and commissions.
The bank boosted capital by 22 percent year-on-year to P17.4 billion at the end of June. This translated to higher capital adequacy ratio of 18.8 percent—well above the 10 percent minimum required of local banks.
PSBank’s distribution network now includes 222 branches and 536 onsite and offsite ATMs all over the country. Doris C. Dumlao
