Philippine Savings Bank, the thrift banking arm of the Metrobank Group, reported an 18 percent hike in net income to P3.37 billion for the first nine months of 2023, resulting in an 11.7 percent growth in return on equity.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its results were driven by the continuous expansion of its core businesses, primarily from growth in the auto loan portfolio, complemented by effective expense management.

"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.

Net interest income increased seven percent to P8.82 billion in the first nine months of 2023 from P8.21 billion in the same period last year.

Revenues from net service fees and commissions rose to P1.33 billion but no comparative figure was provided. For the same period last year, PSBank reported P3.11 billion in revenues from net service fees, commissions, and asset recoveries.

Operating expenses were reduced by one percent as the bank was steadfast in its productivity and operational efficiency initiatives.

The bank’s total loan portfolio grew by 12 percent year-on-year to P123 billion as of September 2023 with auto loans up 24 percent fueled by increased vehicle sales. 

Asset quality remained healthy with a gross non-performing loans (NPL) ratio of 3.4 percent, better than pre-pandemic levels.

As of the end of the third quarter this year, total assets declined to P236 billion from P253 billion while total deposits reached P188 billion, lower than the P203.19 billion registered in the first nine months of 2022. 

Capital improved to P40 billion from P36.8 billion in the first nine months last year with Total Capital Adequacy Ratio and Common Equity Tier 1 Ratio at 24.6 percent and 23.7 percent respectively, both ratios among the highest in the industry and above the minimum level set by the Bangko Sentral ng Pilipinas.