PSBank nets P1.18B

Screengrab from https://www.psbank.com.ph

The Metrobank group’s thrift bank arm Philippine Savings Bank posted a 2-percent growth in first semester net profit to P1.18 billion on the back of higher earnings from core lending.

Core earnings rose by 18 percent year-on-year to P6.06 billion in the first semester, attributed to a stable demand for consumer loans that continued to fuel the expansion of its lending portfolio.

In a regulatory filing on Tuesday, PSBank said its loan book expanded by 12.9 percent to P137.01 billion, led by auto loans which recording a 20-percent growth in the first half.

On the funding side, total deposits rose by 32 percent to P183.61 billion, low-cost deposits increasing by 16 percent.

“Our first half results validate our core banking strategy anchored on customer experience and digitalization. We continue to post a strong financial performance with our retail business growing organically by double-digits, without increasing our brick and mortar branch network. We continue to innovate products and services and develop operational efficiencies while observing prudence. All these things, we do for our customers and stakeholders,” said PSBank president Vicente Cuna Jr.

The bank’s total capital adequacy ratio stood at 14.2 percent of risk assets. Counting only core or tier 1 ratio, capital adequacy stood at 11.3 percent. These numbers are above the Bangko Sentral ng Pilipinas’ benchmark of 10 percent and 9.3 percent, respectively.

On asset quality, non-performing loans ratio remained at 1.1 percent of total loans as of end-June.

PSBank currently has a distribution channel of 250 branches and 613 automated teller machines strategically nationwide.