PSBank bottom line up 1.7%

MANILA, Philippines - The net income of Philippine Savings Bank (PSBank) climbed 1.7 percent as it continues to strengthen its retail business without increasing its brick and mortar branch network.

The thrift bank arm of the Metrobank Group recorded a profit of P1.18 billion in January to June, about P20 million higher than the P1.16 billion registered in the same period last year.

PSBank president Vicente Cuna Jr. said the first half results validate its core banking strategy anchored on customer experience and digitalization.

“We continue to post a strong financial performance with our retail business growing organically by double-digits, without increasing our brick and mortar branch network. We continue to innovate products and services and develop operational efficiencies while observing prudence. All these things, we do for our customers and stakeholders,” he said.

The performance was mainly driven by the 18 percent increase in core income to P6.06 billion in the first semester.

PSBank’s loan book grew 12.9 percent to P137.01 billion from P121.35 billion, driven by stable demand for consumer loans.

On the funding side, the listed bank’s total deposits jumped 32 percent to P183.61 billion from P139.34 billion with low cost checking and savings account increasing by 16 percent.

PSBank currently has 250 branches and 613 ATMs nationwide.

Its total capital adequacy ratio stood at 14.2 percent and Tier 1 ratio at 11.3 percent, above the Bangko Sentral ng Pilipinas’ benchmark of 10 percent and 9.3 percent, respectively.

On Monday, Metropolitan Bank & Trust Co. reported a 4.7 percent increase in earnings to P9.49 billion in the first half from P9.06 billion in the same period last year.

Jette Gamboa, senior vice president at Metrobank, said the bank delivered above-industry performance in loans and low cost deposits as the country’s gross domestic product (GDP) grew above six percent.

“Metrobank is very optimistic about the growth prospects of the economy. Our strong capital position and healthy balance sheet allow us to continuously support the business needs of our customers,” Gamboa said.