Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, reported a 19 percent improvement in net income to P4 billion in the first nine months of the year.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its solid financial performance was driven by higher operating income and better asset quality. 

Core revenues, which include net interest income, service fees and commissions, grew by four percent to P10.52 billion. Increase in operating expenses was capped at four percent, ending at P6.91 billion after three quarters.

PSBank’s total gross loans expanded by 12 percent to P138 billion owing to sustained growth in auto, mortgage and business loans. 

Asset quality improved as gross non-loans ratio dropped to 2.8 percent from 3.4 percent a year ago.

The bank’s total assets stood at P219 billion while total deposits amounted to P167 billion as of end-third quarter. 

Capital funds went up to P43 billion with total capital adequacy ratio and common equity tier 1 ratio at 24.2 percent and 23 percent, respectively. 

Both ratios are above the regulatory minimum set by the Bangko Sentral ng Pilipinas and are among the highest in the industry. 

"We remain well-positioned to serve the growing needs of our customers as we approach the final stretch of 2024. PSBank is gearing up for a more favorable interest rate environment which is seen to further boost consumer loan demand,” PSBank President Jose Vicente Alde said.