PSBank nets P2.3B

METROBANK group’s thrift bank arm Philippine Savings Bank reported a 21 percent decline in net profit last year to P2.3 billion in the absence of extraordinary trading gains that bloated earnings in the previous year.

The bank’s 2013 net income had one-off extraordinary income from the sale of investment portfolio which took advantage of market opportunities at that time. These were not replicated in 2014.

However, the bank’s core margins last year grew by 15 percent year-on-year owing largely to the continued growth in its consumer loan portfolio, mostly coming from auto and mortgage loans, the bank said.

“Our continuing focus on core asset expansion is giving us good results. The increase in our net interest income and fee-based revenues are very solid indicators of sustainability and quality growth. Our retail lending business led by auto and mortgage loans, supported by an increasing deposit customer base, provides a good foundation for core-growth in the coming years,” PSBank president Vicente Cuna Jr. said.

PSBank’s 2014 capital base stood at P17.7 billion with a total capital adequacy ratio equivalent to 19.6 percent of risk assets. Counting only tier 1 capital, the ratio stood at 13.3 percent.

Return on capital for the year stood at 13.6 percent.

Asset quality indicators improved with net non-performing loan (NPL) ratio at 0.5 percent of total loans while NPL coverage stood at 98.2 percent. “The improvement in delinquency is attributable to a combination of enhancements in the bank’s lending processes, collections and credit risk management tools,” the bank said.

PSBank’s total resources ended the year at P 145.6 billion. It had a network of 245 branches and 595 automated teller machines (ATMs) nationwide.