PSBank redeeming P3B notes ahead of schedule

MANILA, Philippines – Listed Philippine Savings Bank (PSBank), the thrift bank arm of Metropolitan Bank & Trust Co. (Metrobank), is redeeming P3 billion worth of debt notes ahead of 2022 maturity.

In a disclosure to the Philippine Stock Exchange (PSE), PSBank senior vice president and chief finance officer Perfecto Ramon Dimayuga Jr. said the bank’s board of Directors passed a resolution approving the exercise of the option to call on the unsecured subordinated debt – tier 2 notes.

The redemption, Dimayuga said, would be subject to the approval by the Bangko Sentral ng Pilipinas (BSP).

He explained the exercise of the call option is allowed by the central bank after five years from the date of issuance.

PSBank issued the notes in February 2012 to take advantage of the ample liquidity in the financial system and to finance its expansion program including possible acquisitions.

“The redemption will fall under the call provisions of the Notes, which have a 10-year maturity or until 2022. The exercise of the call option is allowed by BSP regulations after five years from date of issuance or on Feb. 23, 2017,” Dimayuga said.

Earnings of PS Bank increased 12 percent to P434.8 million in end-March from P387.1 million in end-March last year with the continued expansion of its core businesses.

PSBank president Vicente Cuna Jr. earlier said the thrift bank remained steadfast in providing excellent customer experience to clients as it believes that banking entails more than just lending and deposit taking.

“As early as the first quarter, we provided the necessary boost in growing our core retail businesses. And we plan to further grow by offering new products that cater to our customers’ banking needs through targeted cross selling campaigns throughout the year,” he said.

PSBank’s total loan portfolio posted a double-digit growth of 14 percent to P118 billion in the first quarter from P103.6 billion in the same quarter last year mainly driven by auto and mortgage loans.

The bank’s deposit base zoomed 24 percent to P136.6 billion from P110.6 billion with low cost funds increasing by 21 percent. Its core revenues, composed of net interest margin and fee income, went up by 11 percent year-on-year.