PSBank profit up 2.2% in H1

MANILA, Philippines – Earnings of lPhilippine Savings Bank (PSBank) inched up 2.2 percent in the first half backed by revenues from consumer loans, investments, and fee-based income.

PSBank president Vicente Cuna Jr. said the thrift bank arm of the Metropolitan Bank & Trust Co. posted a net income of P1.2 billion in end-June this year from P1.1 billion in end-June last year.

He said the higher net earnings was supported by a 10 percent increase in core income, composed of revenues from consumer loans, investments and fee-based income.

According to him, PSBank’s lending activity grew 13.2 percent to P121.3 billion fueled by auto and mortgage loans.

Notwithstanding the double-digit growth of its loan portfolio, the bank kept its non-performing loans (NPL) ratio at 1.2 percent with NPL coverage at 82 percent.

Total resources increased 18.4 percent to P176.5 billion. Its capital base stood at P20.2 billion with a Tier 1 and total capital adequacy ratio of 11.7 percent and 14.8 percent, respectively.

On the funding side, the bank’s deposit liabilities rose 17 percent to P139.3 billion.

“The ’customer-centric’ mindset continues to give us positive financial results through prudent lending and increased stable funding,” Cuna said.

Cuna said the bank has received local and international recognitions as a testament to its efforts to introduce innovation and for being the market standout in delivering top-quality customer service.

“Understanding the needs of our clients remains our priority,” he said.

PSBank has a total of 255 branches and 626 ATMs nationwide.

The thrift bank is redeeming P3 billion worth of unsecured subordinated debt – Tier 2 notes issued in 2012 ahead of their 2022 maturity.

Metrobank Ty spent P1.61 billion last July 28 to raise its stake in PSBank to 82.67 percent from 75.98 percent.