PSBank earnings surge to record P2 B

MANILA, Philippines -Philippine Savings Bank, the thrift bank unit of the Metrobank Group, posted a record P2-billion net income in the first quarter of 2013 from P546 million a year earlier as it grew its loan and investment portfolio.

In a statement, the bank said its net interest income reached P1.5 billion, with income from loans growing 16 percent to P1.9 billion.

Total loans grew 23 percent to P77 billion as heightened consumer confidence and sustained economic growth continue to buoy demand for loans.

Auto loans rose 28 percent compared to the previous year, while mortgage loans expanded 21 percent.

The bank’s combined SME and large corporate loans likewise went up 25 percent. 

Despite the increase in loans, net non-performing loan (NPL) ratio declined to 0.4 percent. It also set aside P609 million in provisions for the first quarter thus increasing loan coverage to 102 percent.

The prevailing lower interest rate environment has allowed the bank to recognize opportunities from its investments in government securities.

PSBank also posted a 13 percent rise in income from service charges and commissions.

On the other hand, improvements in operating efficiency brought about by automation kept operating expenses flat at P1.8 billion.

The bank’s equity was likewise 27 percent higher at P18.7 billion. This translates to higher capital adequacy ratio of 18.6 percent which is well above the 10 percent minimum required level for local banks.

PSBank’s distribution network now includes 222 branches and 537 onsite and offsite ATMs all over the country.

“We are seeing traction in our strategy of improving sales coverage and operating efficiency as evidenced by the continued increase in market share for our key loan products, auto and mortgage. Given this loan increase, we are confident to exceed the original income target of the bank for the year,” PSBank executive vice president Jose Vicente L. Alde said.

As this developed, PSBank has declared another round of cash bonuses to its stockholders equivalent to 75 centavos per share, a disclosure to the Philippine Stock Exchange (PSE) showed.

The bank said its board has approved the 7.5 percent regular cash dividend for the first quarter of 2013 amounting to P180.19 million.