Philippine Savings Bank (PSBank), the thrift banking arm of the Ty family, reported a 23 percent improvement in net income to a record-high P4.53 billion last year from P3.68 billion in 2022 due to higher revenues. 

In a disclosure to the Philippine Stock Exchange (PSE), the bank said this translates to a return on equity of 11.7 percent. 

PSBank said its strong financial performance came from the double-digit growth in loans, higher investment revenues and muted costs brought by operational efficiencies. 

Net interest income improved seven percent year-on-year to P11.83 billion while operating expenses declined by one percent due to continuous cost optimization efforts of the bank.

"This significant milestone was a result of team work and steadfast commitment of PSBankers in delivering effortless banking to our clients and stakeholders,” PSBank President Jose Vicente L. Alde said. 

He added that “we want to leverage on this momentum to expand our coverage, provide diversified offerings and further invest in technology to level up customer experience in the succeeding years.”

PSBank’s gross loan portfolio expanded by 12 percent to P125 billion from previous year’s P112 billion as auto loans grew by 24 percent driven by higher demand for vehicles. 

Despite the increase in the bank’s loan portfolio, gross non-performing loans ratio decreased year-on-year from 3.5 percent to 3.3 percent at the end of 2023, indicating better credit quality.

As of Dec. 31, 2023, total assets closed at P238 billion while total deposits reached P190 billion.

The bank’s capital registered at P40 billion with total capital adequacy ratio and common equity tier 1 ratio at a sturdy level of 24.5 percent and 23.6 percent, respectively. 

The capital ratios are above the minimum levels set by the Bangko Sentral ng Pilipinas and among the highest in the industry.