Philippine Savings Bank (PSB) posted a 23 percent growth in net income to P1.20 billion in the first quarter of 2024 from the P976.88 million earned in the same period last year. 

In a disclosure to the Philippine Stock Exchange, the bank said its core revenues, comprising of net interest income and net services fees and commissions, inched up two percent year-on-year to P3.49 billion, while operating expenses grew by 5 percent to P2.30 billion.

The bank's total gross loan portfolio expanded by 10 percent year-on-year to P128 billion as of March 31, 2024. This was driven by the demand for motor vehicles which led to a 20 percent growth in auto loans. 

Gross non-performing loans (NPL) ratio remained in check at 3.4 percent resulting in lower provisions this quarter. 

Total assets reached P234 billion while total deposits and capital were recorded at P185 billion and P41 billion, respectively. 

Meanwhile, total capital adequacy ratio stood at 24.6 percent while common equity tier 1 ratio was at 23.5 percent. Both ratios are well above the regulatory minimum set by the Bangko Sentral ng Pilipinas and among the highest in the industry.

“Despite prevailing economic challenges, we continue to see steady growth in our core business following our record-breaking performance in 2023. PSBank remains dedicated to offering simple and effortless banking solutions to meet the rapidly evolving needs of consumers,” PSBank President Jose Vicente L. Alde said.

PSBank 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.

The bank 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 7 percent year-on-year to P11.83 billion while operating expenses declined by 1 percent due to continuous cost optimization efforts of the Bank.