Philippine Saving Bank (PSBank), the thrift banking arm of the Metrobank Group, grew its net income by 18 percent for the first half of 2023 to P2.17 billion from P1.84 billion in the same period last year. 
 

In a disclosure to the Philippine Stock Exchange, the bank said this resulted in a higher return on equity of 11.4 percent compared to 10.4 percent in the first six months of 2022. 
 

The continuing uptrend in the Bank’s consumer loan releases, improvement in credit quality, and gains realized from productivity and efficiency initiatives further strengthened the Bank’s platform for sustainable earnings in the post-pandemic era. 
 

Core revenues, composed of net interest income from loans and investments including fees, grew by 8 percent to P6.8 billion from P6.3 billion a year ago.
 

Operating expenses remained subdued and was reduced by 2 percent as a result of ongoing cost optimization projects.
 

PSBank’s total loan portfolio expanded by 9 percent to P120 billion as of June 2023. This was primarily driven by the 21 percent increase in auto loans owing to the steady influx of demand for vehicle financing. 
 

Despite the portfolio increase, gross non-performing loans dropped by 11 percent resulting in a NPL ratio of 3.5 percent, better than pre-pandemic levels.
 

The bank's total resources stood at P235 billion while total deposits reached P187 billion by mid-2023.
 

Capital improved by 7 percent to P39 billion with Total Capital Adequacy Ratio at 24.6 percent and Common Equity Tier 1 Ratio at 23.7 percent. Both ratios are above the minimum level set by the Bangko Sentral ng Pilipinas (BSP) and among the highest in the industry.
 

"The bank, through its recalibrated strategies and focus on enhanced customer experience, was able to benefit from the continued expansion of the economy and the sustained growth in consumer demand for the first six months. We are hopeful, despite the external headwinds, that this can be sustained for the rest of the year," PSBank President Jose Vicente L. Alde said.