Lending buoyed PSBank Jan-Sept earnings to P4B

Philippine Savings Bank (PSBank) booked a 19-percent growth in earnings, which reached P4 billion in the January to September period driven by its lending business, with the company preparing for an influx in loan demand due to falling interest rates.

The thrift banking arm of the Metrobank Group on Monday said core revenues, which include net interest income, service fees and commissions, grew by 4 percent to P10.52 billion.

Gross loans climbed by 12 percent to P138 billion on higher auto, mortgage and business loans.

READ: PSBank hits record income as car loans rise

The bank’s nonperforming loans ratio, a key measure of asset quality, improved to 2.8 percent from 3.4 percent in the same period last year.

“We remain well-positioned to serve the growing needs of our customers as we approach the final stretch of 2024,” PSBank president Jose Vicente Aide said in a statement.

“PSBank is gearing up for a more favorable interest rate environment, which is seen to further boost consumer loan demand,” he added.

Its total assets stood at P219 billion as of end-September.

Metrobank, which owns 88 percent of PSBank through chair Arthur Ty, had also reported higher earnings in the first nine months of the year due to an increase in car loans.

The Ty family-led banking giant’s bottom line expanded by 12.4 percent to a record P35.7 billion.

Net interest income at the country’s second-largest private bank jumped by 11 percent to P85.7 billion, buoyed by a 15.7-percent surge in car loans.

Data from the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association show that the number of vehicles sold in the country grew by 6.2 percent year-on-year in August.

Local dealers had sold 39,155 units versus 36,714 units in August last year.

Earlier, Metrobank said it was expecting another banner year on the back of the anticipated increase in consumer loans.

The Bangko Sentral ng Pilipinas has so far slashed its key policy rate by 50 basis points to 6 percent. This is expected to pull up demand for loans due to lower borrowing costs. —Meg J. Adonis INQ