THE Metrobank group’s thrift bank arm Philippine Savings Bank posted a net profit of P1.13 billion in the first six months, a slight increase from the P1.128 billion profit chalked up in the same period last year.
This translated to a return-on-equity of 12.5 percent, the bank said in a press statement.
“Owing to aggressive sales and marketing initiatives supported by improved operational and process efficiencies, the bank steadily grew earnings from its core business,” PSBank said.
Net margins and fee-based income rose by 8 percent year-on-year to P4.7 billion while interest income from loans and receivables grew by 11.3 percent year-on-year, driven by the growth in consumer loans.
PSBank’s loan book expanded by 15.9 percent year-on-year to P107.2 billion in the first semester. Consumer loan bookings increased by 28.4 percent.
“The bank made further headway in improving support infrastructures to maximize the potential of its branch distribution network for loan acquisitions. On the ground, apart from its unparalleled quick processing turnaround time commitments, the branches were able to offer added incentives to eligible borrowers in the form of free 1st year comprehensive insurance, chattel mortgage fees and gas allowance for auto loans; and free appliance packages for home loans.
On the funding side, total deposits increased by 5.3 percent year-on-year to P119.1 billion with low cost deposits increasing by 17.8 percent, thus providing a stable low-cost fund base.
On asset quality, PSBank’s net non-performing loans ratio was kept low at 1.2 percent even with the growth in its loan portfolio.