MANILA, Philippines — The Metrobank group’s thrift bank arm Philippine Savings Bank (PSBank) grew its net profit by 10.32 percent year-on-year to P680.73 million in the first quarter on higher fee-based earnings, and trading gains alongside a tighter lid on expenses.
“The bank’s commendable double-digit growth puts us on track of out 2019 targets, and is a deliberate result of our firm commitment to reinforce our sales efforts, improve on operating efficiencies, digitise products and channels, and consistently provide exceptional customer experience,” PSBank president Jose Vicente Aide said in a press statement.
PSBank grew its loan book by 6.8 percent year-on-year to P159.3 billion in the first quarter, driven by automobile and mortgage loan portfolios. Total resources expanded by 4.9 percent to P236.2 billion.
However, net interest income declined by 9.2 percent year-on-year to P2.65 billion in the first three months, mostly due to a hefty 62.8-percent increase in interest expenses.
Higher service fees and commission rose by 29.3 percent year-on-year to P468.48 million during the period. Trading gains also generated P14.6 million compared to a loss of P80 million in 2018.
The bank also trimmed its operating expense in the first three months by 9.8 percent year-on-year to P2.67 billion, partly due to a decline in overhead and provisioning costs.
Total resources expanded by 4.9 percent year-on-year to P236.2 billion. On the funding side, deposits declined by 0.6 percent year-on-year to P185 billion as the bank “strategically rebalanced its funding strategy with emphasis on low-cost funds, retail clients and alternative sources.” Low-cost deposits increased by 6.6 percent to P55 billion.
To fund growth in the years ahead, the bank completed a P8-billion stock rights offering last January. Capital adequacy ratio to risk assets ended the period at 18.4 percent while common equity tier 1 stood at 15.9 percent.
PSBank had a network of 250 branches and 570 automated teller machines as of end-March.