PSBank nets P1.21B in Q1, driven by consumer lending

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MANILA, Philippines — The net income of Philippine Savings Bank (PSBank) inched up by 1 percent to P1.21 billion in the first three months of the year, buoyed by strong consumer lending.

The thrift banking arm of the Metrobank Group said in a regulatory filing on Friday its core revenues, which include net interest income, service fees and commissions, had likewise climbed by 9 percent to P3.81 billion.

Gross loans jumped by 19 percent to P152 billion in the January to March period, driven by higher auto, mortgage and small-to-medium enterprise lending, PSBank said. It has yet to release its full quarterly report bearing additional details.

Despite the loan book expansion, PSBank’s asset quality improved, with nonperforming loans ratio easing to 2.6 percent from 3.4 percent in the same period last year.

“Consumer loan demand has remained high and as long as economic conditions continue to be stable, we are optimistic to capitalize on this trend in the coming months,” PSBank president Jose Vicente Alde said in their disclosure.

As of end-March, PSBank’s total assets stood at P222 billion. Total deposits and capital reached P170 billion and P45 billion, respectively.

READ: Record high: PSBank net income topped P5B in 2024

Easing cycle

PSBank’s loan growth also came at a time when the Bangko Sentral ng Pilipinas began its monetary policy easing cycle.

Rate cuts typically drive demand for loans due to lower borrowing costs.

READ: BSP cuts policy rate by 25 bps to 5.5%

Alde earlier said they wanted to capitalize on “the growing and evolving needs of consumers” this year.

Meanwhile, Ty family-led Metrobank, which owns 88 percent of PSBank, saw modest growth in its bottom line during the quarter due to higher expenses for bad loans.

Metrobank’s net income grew by 2.5 percent to P12.3 billion in the first three months of the year. Net interest income likewise edged up by 2.4 percent to P29.4 billion.

Gross loans surged by 16.1 percent, buoyed by growth in the commercial and consumer segments, which grew by 16.1 percent and 16 percent, respectively.

Provisions ballooned by 362 percent to P2.6 billion.