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PSBank to offer medium-term notes worth P10B

/ 05:37 AM September 22, 2018

The Metrobank group’s thrift bank arm Philippine Savings Bank (PSBank) has joined a growing number of local banks going to the local debt market to diversify their funding base.

PSBank has obtained approval from its board to issue medium-term fixed and/or floating rate notes (MFNs) of up to P10 billion.

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“The MFN issuance will give PSBank an opportunity to access medium-term and stable funding as the bank further expands its consumer banking business,” PSBank said in a disclosure to the Philippine Stock Exchange on Friday.

The disclosure read the final terms, including the offering period and interest rate, would depend on market conditions.

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“Our medium term notes will be [repaid in] 15 to 36 months,” PSBank senior vice president and chief finance officer Perfecto Ramon Zavalla Dimayuga Jr. said in a text message.

Last month, PSBank also raised P5.08 billion from an offering of high-yielding deposit papers. The long-term negotiable certificates of time deposits, which carried a tenor of five years and six months, were priced to yield 5 percent a year to be paid on a quarterly basis.

The bank grew its net profit in the first semester by 14.7 percent year-on-year to P1.35 billion on higher earnings from lending and fee-based businesses.

Net interest income in the first six months improved by 8.8 percent year-on-year to P5.85 billion as the bank expanded its loan book by 10.7 percent year-on-year to P151.62 billion.

The six-month performance translated to a return on equity of 11.83 percent.

Total resources expanded by 7.4 percent year-on-year to P234.76 billion as of end-June.

PSBank currently has 250 branches and over 600 automated teller machines nationwide. —DORIS DUMLAO-ABADILLA

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TAGS: banks, Philippine Savings Bank, PSBank
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