PSBank profit more than doubled to P2.85B in Jan to Sept

Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, more than doubled its net income in January to September on better loan portfolio quality and higher non-core revenues.

The listed bank, in a disclosure on Monday, reported that its net income rose by 126 percent to P2.85 billion in January to September from P1.26 billion in the same period a year ago.

Net interest income for the nine-month period amounted to P8.21 billion. Revenues from net service fees, commissions and asset recoveries improved by 52 percent to P3.11 billion.

Operating expenses, the bank said remained in check growing by only 1 percent year-on-year.

“With the improving levels of consumer spending, we have managed to book higher loan volumes specifically for auto and home during the first nine months of 2022. We hope to see this momentum to carry through till year-end even as market conditions remain volatile,” PSBank president Jose Vicente Alde said.

Gross non-performing loans ratio—the portion of past due loans compared to the total loan portfolio—was down markedly to 3.6 percent from 6.6 percent in the same period last year.

The improving asset quality allowed the Metrobank unit to cut its credit provisions to P969 million from P2.77 billion a year earlier.

Deposits amounted to P203.19 billion for the period, supported by low-cost deposits that grew by 6 percent.

Total assets stood at P252.96 billion as of end-September. Capital adequacy ratio and equity tier 1 ratio reached 24.9 percent and 23.9 percent, respectively, which were both above the regulatory requirement.

“We will keep our digital service channels robust, reliable and secure, dedicated to consistently provide exceptional customer experience at every touchpoint,” Alde added, noting the use of QR (quick response) code as a payment mode to retail stores and other merchants.