MANILA -Increased loan takeup and improving credit quality allowed Philippine Savings Bank (PSBank) to end the first quarter of 2023 with a double-digit profit growth.
In a statement on Monday, the thrift banking arm of Metrobank Group reported that its bottom line grew by 10 percent to P976.8 million in the first three months.
Net interest income for the period climbed 8 percent to P2.95 billion. Net service fees were up 7 percent to P464.6 million.
As of end-March 31, gross loans picked up by 4 percent to P116 billion amid higher consumer demand brought about by the continued reopening of the economy. It noted that car loans accelerated by 13 percent during the period.
Gross non-performing loans (NPLs) ratio, meanwhile, improved to 3.2 percent from 5 percent a year ago. A lower ratio means lesser amount in NPLs, which are borrowings that have not been paid for at least 90 days.
“Even as interest rates and inflation remain high, elevated consumer spending continues to persist which has fueled significant retail loan demand for the early part of 2023. This works well for PSBank which primarily caters to the needs of the consumer market, specifically for their auto and mortgage loan requirements among others,” PSBank president Jose Vicente Alde said.
Deposits amounted to P209.81 billion for the period.
Total assets of the bank, meanwhile, stood at P255.76 billion as of the first quarter. Capitalization was at P37.82 billion, with capital adequacy and tier 1 ratios at 24.6 percent and 23.8 percent, respectively.
“As we remain cautiously optimistic for any possible short-term volatility attributed to overseas developments, we are equally confident of the organization’s ability to adapt to challenges, pursue business opportunities, and deliver well for our customers and stakeholders,” he said. INQ