PSBank net increases 4.25% to P2.45B

The Metrobank group’s thrift bank arm, Philippine Savings Bank, booked a 4.25-percent growth in net profit last year to P2.45 billion on higher core earnings.

This translated to a return on average equity of 12.5 percent, the bank disclosed to the Philippine Stock Exchange yesterday.

The increase in net profit was attributed by the bank to higher core income, composed of net interest margin and fees and commissions, which rose by 11.6 percent to P10.8 billion last year.

PSBank president Vicente Cuna Jr. said: “2016 was a good year for PSBank. Aside from strengthening our core business, the bank was also conferred with several new and back-to-back recognition from local and international award-giving bodies, acknowledging our ability to come up with innovative product offerings and provide exceptional end-to-end customer experience. Such recognition drives us to continue to provide the best banking experience to our clients with products and services that are simple and reliable.”

The bank’s total loan portfolio expanded by 11.4 percent to P129.2 billion, mainly driven by the significant increase in auto and mortgage loans.

Despite the expansion of its loan portfolio, PSBank kept its net non-performing loans (NPL) ratio in check at 1.1 percent of total loans, with NPL coverage at 88.6 percent.

On the funding side, total deposits grew by 17.9 percent to P158.39 billion, with low-cost funds increasing by 19.1 percent.

PSBank ended last year with total resources of P196.9 billion, rising by 16.3 percent.

The bank’s core or tier 1 and total capital adequacy ratios stood at 11.1 percent and 14.1 percent, respectively. Both are above the minimum required level set by the Bangko Sentral ng Pilipinas. —DORIS DUMLAO-ABADILLA