Screengrab from https://www.psbank.com.ph
MANILA–Philippine Savings Bank, the thrift bank arm of the Metrobank group, posted a 61.7-percent decline in first semester net profit to P1.1 billion in the absence of extraordinary trading gains seen in the first half of last year.
The bank, however, grew its durable earnings stream as net interest income rose by 21 percent year-on-year to P3.8 billion in the first semester.
PSBank’s loan portfolio recorded a double-digit growth of 14 percent to P92.5 billion as of end-June 30 from the same period last year.
Total sources expanded by about a fifth to end the semester at P141 billion.
On the funding side, deposits increased by 22 percent to P113.1 billion with its low cost deposits rising by 25 percent. PSBank also raised P3 billion from the issuance of Basel 3-compliant debt notes qualifying as tier 2 capital last May.
Basel 3 framework, which was implemented in the country at the beginning of this year, introduced a complex package of reforms designed to improve the ability of banks to absorb losses. This also extended the coverage of financial risks and required stronger firewalls against periods of stress.
With this issuance, PSBank’s total capital adequacy ratio further improved to 19 percent of risk assets, well above the 10 percent minimum required level for local banks.
“After our recent capital-raising activity, PSBank is well-positioned to meet the market’s aggressive demand for consumer loans. We, however, remain vigilant in our credit processes to ensure we maintain the high quality of our loan portfolio,” PSBank president Vicente Cuna Jr. said.
In terms of asset quality, PSBank’s net non-performing loan (NPL) as a ratio of total loans was kept low at 0.3 percent despite the increase in loans. Remaining prudent in its provisioning, it has set aside buffer equivalent to 107 percent NPL coverage.
PSBank’s distribution network now includes 226 branches and 569 onsite and offsite ATMs (automated teller machines) all over the country.
The bank recently launched its mobile banking facility which allows customers to access products and services using mobile phones and tablets.
The PSBank Mobile App is now available on Apple’s Appstore and Android’s Google Play and will be available soon for Blackberry and Windows-based smartphones.