Philippine Savings Bank (PSBank) posted an 18 percent growth in net income to P2.56 billion in the first half of 2024 from the P2.17 billion earned in the same period last year, resulting in an annualized return on equity of 12.5 percent. 

In a disclosure to the Philippine Stock Exchange (PSE), the thrift bank said the strong demand for consumer loans and improved credit quality contributed to its solid financial performance. 

Net interest income rose by four percent year-on-year to P6.08 billion, while total operating income, including service fees, commissions, and other income, ended the half at P7.74 billion. Operating expenses increased by five percent to P4.62 billion.

The bank’s total gross loan portfolio increased 10 percent to P132 billion by the end of June 2024 compared to last year's P120 billion. 

This was propelled by an 18 percent increase in auto loans as vehicle sales in the country continued its uptrend. 

With steady loan portfolio expansion, asset quality further improved as the gross non-performing loans ratio declined to 2.9 percent as of the first half of 2024 from 3.5 percent a year ago. 

Total assets closed at P220 billion, while total deposits and capital reached P170 billion and P42 billion, respectively. 

The bank's total capital adequacy ratio of 24.3 percent and common equity tier 1 ratio of 23.2 percent are above the regulatory minimum set by the Bangko Sentral ng Pilipinas and remain among the highest in the industry.

“By prioritizing customer-centricity and a proactive sales approach in our strategy, the bank has seen consistent growth in its core business. Apart from providing top-notch quality service to our patrons, we ensure that the products we offer can pave the way for Filipinos to achieve their financial goals and aspirations," PSBank President Jose Vicente Alde said.

“We are hopeful that the positive performance in the first half will be sustained for the rest of the year,” he added.