PSBank made P1.4-B profit at end-June

The Metrobank group’s thrift bank arm Philippine Savings Bank (PSBank) posted a 2.5-percent year-on-year growth in first semester net profit amounting to P1.4 billion on higher fee-based earnings, trading gains, sale of foreclosed assets and tighter lid on expenses.

“The sustainability of our revenues coming from our consumer loans, supported by a bankwide mind-set of increasing productivity via process streamlining and automation, truly helped us generate strong financial results for the first half of 2019. Our customer-centric and technology-driven approach is a blueprint that will help us prepare for the future,” PSBank president Jose Vicente Alde said.

He said the bank would maintain a positive outlook for the rest of the year.

On the lending business, PSBank’s net interest income declined by 10 percent year-on-year to P5.27 billion in the first six months due to higher interest expenses paid on time deposits and long-term negotiable certificates of deposits.

The bank grew its loan book by 6.8 percent year-on-year to P160.8 billion. Auto and mortgage loans continued to be the main contributors for growth in consumer lending, while the increase in small and medium enterprise loans reinforced growth in commercial lending.

Amid everything, the bank was able to keep bad loans in check at a ratio of 2.8 percent of total loans at end-June compared to 3.1 percent in the previous quarter.

Fee-based earnings rose by 33 percent year-on-year to P992.45 million while trading gains contributed P92.5 million, reversing the P115.47 million loss in the same period last year due to a much-improved financial market environment.

PSBank also booked some P233.79 million in gains from the foreclosure and sale of investment properties.

On the funding side, PSBank’s total deposits were lower at P179.4 billion from P200.1 billion in the same period last year. The bank attributed this to a rebalancing of its funding profile to veer more toward retail deposits and alternative funding sources.