PSBank posted record profit in ’13

Screengrab from https://www.psbank.com.ph

MANILA, Philippines—Metrobank thrift banking arm Philippine Savings Bank grew its net profit last year by 29 percent to a record high of P2.9 billion.

Last year’s performance, which translated to a return-on-equity of 18.72 percent, was attributed by the bank to the aggressive growth of its loan portfolio and gains from its investment portfolio.

PSBank’s loan book grew by 17 percent last year to P85.9 billion. The bulk of the increase came from consumer loans.

With the expansion in PSBank’s core assets, net interest income rose by 18 percent to P6.7 billion while total gross revenue increased by 18 percent to P14.7 billion.

“In 2013, we focused on expanding our core assets to sustain our growth in the coming years and we are happy with the results. Our auto and mortgage business continue to strengthen, backed up by an aggressive retail deposit campaign,” PSBank president Vicente Cuna said in a statement.

Total deposits expanded by 13 percent year on year to breach the P100-billion level. At the end of the year, the deposit base was at P106.5 billion.

In terms of asset quality, the bank’s net non-performing loan (NPL) ratio stood at only 0.2 percent of total loans while its bad loan coverage ratio is in excess of 100 percent.

The bank’s capital adequacy ratio remains strong at 16.9 percent as of the end of 2013, well above the 10 percent minimum required by banking regulators.

The bank ended last year with 224 branches and 551 ATMs (automated teller machines) nationwide.—Doris C. Dumlao