PSBank nets record-high P2 billion in 2011

MANILA, Philippines – Philippine Savings Bank, the thrift bank arm of the Metrobank group, grew its net profit last year by 12 percent to a record high P2 billion on higher lending and investment volume as well as improved loan margin.

In a disclosure to the Philippine Stock Exchange on Wednesday, PSBank said the robust results last year were due to a 14-percent improvement in core net interest margin as the thrift bank expanded its balance sheet by 15 percent to P120.3 billion.

PSBank’s gross loan book grew by 9 percent to P66.1 billion fueled by auto and mortgage lending which respectively expanded by 13 percent and 9 percent. The higher loan portfolio was achieved in spite of the 3.2-percent decline in industry passenger car sales and the interest rate competition on mortgage loans, the disclosure said.

Investments in government securities likewise rose by 18 percent to P31.1 billion due to the increase in its funding base.

PSBank’s deposits expanded by 16 percent in 2011 as it expanded its network with 20 additional locations to end the year with 200 branches. It likewise added 126 new ATMs (automated teller machines) of which 105 were in offsite locations in line with its thrust to increase customer touch points via various channels. Of these offsite ATMs, 43 were installed in LRT stations to serve commuters and to complement the 15 PSBank ATMs in various MRT stations.

On the expenditure said, the increase in operating expenses was tempered at 7 percent even with additional investments to beef up branches, ATMs and IT infrastructure.

In terms of asset quality, the thrift bank’s non-performing loan declined as a ratio of total loans to 3.1 percent versus the 6.2 percent average ratio for the thrift banking industry as of end-September last year. Capital base rose by 34 percent to P15.5 billion while capital adequacy ratio to risk assets amounted 13.9 percent compared to the minimum regulatory requirement of 10 percent.

PSBank, the country’s second largest thrift bank, was recognized last year as the strongest savings bank in Asia by The Asian Banker magazine. PSBank figured prominently in the ongoing impeachment trial of Supreme Court Chief Justice Renato Corona, who purportedly kept foreign currency and multimillion-peso deposits with the bank’s Katipunan Branch in Quezon City.