MANILA -The Ty family’s Philippine Savings Bank (PSBank) sustained strong profit growth during the first nine months of the year, mainly fueled by car loans.
Net income from January to September hit nearly P3.8 billion, up more than 18 percent, while return on equity grew to 11.7 percent, the thrift banking arm of the Metropolitan Bank & Trust Co. said in a stock exchange filing on Monday.
“The results were driven by the continuous expansion of its core businesses, primarily from growth in the auto loan portfolio, complemented by effective expense management,” PSBank said.
PSBank’s total loan portfolio expanded by 12 percent to P123 billion. The auto loans segment alone surged by 24 percent amid strong demand for new cars.
During the period, net interest income hit P8.82 billion while revenues from net service fees and commissions rose to P1.33 billion, the filing showed.
“Despite the unpredictable headwinds, we remain focused on sustaining our strong results while we continue to innovate on products, services and processes consistent with our commitment to deliver effortless banking to our customers,” PSBank president Jose Vicente L. Alde said in the filing.
The lender noted that asset quality remained “healthy” as the non-performing loans ratio improved to 3.4 percent, which was better than the prepandemic figure.
Operating costs were lower by 1 percent as PSBank implemented “productivity and operational efficiency initiatives”.
By end-September, PSBank had total assets of P236 billion while total deposits amounted to P188 billion. It said capital also improved to P40 billion while total capital adequacy ratio and common equity tier 1 ratio at 24.6 percent and 23.7 percent, respectively.
PSBank said both ratios among the highest in the industry and above the minimum level set by the Bangko Sentral ng Pilipinas.