Interest earnings, fee income boost PSBank profit in first three months by 18%
Philippine Savings Bank, the Metrobank group’s thrift banking arm, grew its net profit in the first three months by 18 percent year-on-year to P511 million on higher interest earnings, fee-based income as well as operational efficiency.
In the first three months, PSBank grew its loan book by 13 percent year-on-year to P134 billion, attributed to a strong demand in the consumer lending segment, particularly auto and mortgage loans.
“We managed to maintain our momentum in pursuing our strategy of expanding our core businesses by making our products available online, making our channels more accessible, and processes more efficient to achieve customer satisfaction and offer the best customer experience to our clients,” PSBank president Vicente Cuna Jr. said in a press statement.
“This was clearly evident in the first quarter year-on-year growth of our auto loans, which outpaced the industry’s performance during the same period,” he added.
The bank’s growth was supported by a 25-percent year-on-year expansion in deposits to P170 billion, with low-cost funds growing by 18 percent year-on-year.
In terms of asset quality, PSBank’s net non-performing loans (NPL) ratio was steady at 1.1 percent, while NPL coverage ratio increased to 86 percent from 84 percent a year ago.
Cuna noted that PSBank also geared up for business expansion this year through its recent issuance of long-term negotiable certificates of time deposits last January.
PSBank ended March with total resources expanding by 17 percent to P205 billion.
In terms of capital adequacy, the bank’s tier 1 and total capital adequacy ratios stood at 11.1 percent and 14 percent, respectively.
Both are above the minimum levels required by the Bangko Sentral ng Pilipinas.
PSBank currently has 255 branches and 618 ATMs (automated teller machines) nationwide. —DORIS DUMLAO-ABADILLA
