PSBank nets P2.7B

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

Metrobank group’s thrift banking arm Philippine Savings Bank (PSBank) grew its net profit last year by 8.3 percent to P2.7 billion on a double-digit increase in earnings from lending and fee-based businesses.

In a disclosure to the Philippine Stock Exchange on Monday, PSBank said the strong performance of core revenues composed of net interest income and fee-based income remained as the main drivers of the increase in profits.

Last year’s performance translated to a return on equity of 12.5 percent for PSBank.

“We are pleased to see that the results of our efforts in digitization and customer service are becoming evident with the year in and year out strong performance of our core business, making our growth stable and sustainable” PSBank president Vicente Cuna said.

Net interest income grew by 14.6 percent, while fee-based income increased by 19.9 percent, the bank said.

PSBank grew its loan book last year by 13.3 percent to P146.3 billion. Auto and mortgage loans continued to be the main contributors to the expansion in consumer lending. An increase in small and medium enterprise (SME) loans, on the other hand, buoyed growth in commercial lending.

On asset quality, PSBank kept non-performing loans at 1.2 percent of total loans as of end-2017.

Deposits increased by 19.3 percent to P188.9 billion, with low-cost funds growing by 16.3 percent.

PSBank ended 2017 with P223.3 billion in total assets, rising by 13.4 percent from the previous year.

Total equity stood at P22.4 billion, up by 11.8 percent. The bank’s tier 1 and total capital adequacy ratios ended the year at 11.1 percent and 13.9 percent of total risk assets, respectively. Both are above the minimum requirements set by Bangko Sentral ng Pilipinas of 6 percent and 10 percent for tier 1 and total capital adequacy ratio, respectively.

The bank’s earnings per share increased to P11.05 from P10.20 last year.

PSBank, the country’s second largest thrift bank in the country, has a combined distribution network of 250 branches and over 600 onsite and offsite ATMs (automated teller machines) nationwide.