PSBank more than doubles profit
Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, more than doubled its net income to P1.84 billion in the first half of 2022 from the P0.88 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the bank said “The rise in profit was propelled by continuous improvement in loan portfolio quality, expansion of revenues from other operating income, and controlled operating expense.”
Net interest income reached P5.45 billion while net service fees and commissions grew by 13 percent. A strong revenue growth of 101 percent in other non-interest income lines was likewise achieved.
These were driven by increased business activities from the opening- up of the economy, and further relaxation of mobility restrictions.
Growth in operating expenses remained under control at 3 percent year-on-year as the Bank continues its productivity and operational efficiency initiatives.
Gross Non-Performing Loans contracted by almost half since the first half of 2021 thus reducing credit provisions to P625 million from P2.17 billion a year ago. Net Non-Performing loans ratio was at 1.96 percent, better than pre-pandemic levels.
PSBank’s total assets stood at P268 billion as of end-June 2022. Total deposits were stable at P220 billion with low cost deposits growing by 10 percent year-on-year.
Capital improved by 4 percent to P36.06 billion. Total Capital Adequacy Ratio and Common Equity Tier 1 Ratio remained strong at 24.6 percent and 23.5 percent, respectively; both of which are way above the regulatory requirement of the Bangko Sentral ng Pilipinas (BSP).
“We observed a significant increase in consumer lending activity during the first semester of 2022. The Bank remains optimistic that this can be sustained for the remainder of the year despite ongoing geopolitical events and other external factors,” PSBank President Jose Vicente L. Alde said.
He added that, “We will continue to be proactive in our strategy to adapt to the changing market conditions with our focus on productivity, operational discipline, innovation and customer experience.”
“As the economy grows, we expect increased business opportunities; and the Bank is well-prepared to provide the banking needs of consumers,” Alde noted.