PSBank, AUB book double-digit profit growth

MANILA, Philippines — Mid-sized banks Philippine Savings Bank (PSBank) and Asia United Bank (AUB) booked double-digit growth in earnings in the first half of the year due to their strong core businesses.

PSBank, the consumer banking arm of the Metropolitan Bank & Trust Co. of taipan George SK Ty, said its net income grew 14.7 percent to P1.35 billion in the first semester from P1.18 billion in the same period last year on the back of robust revenues driven by net interest income and service fees, the bank said.

Its net interest income climbed 8.8 percent to P5.85 billion from P5.38 billion as its loan book grew 10.7 percent to P151.62 billion from P137.01 billion.

“Our first half performance is a continuous realization of our institutional strategy which focuses on the strength of our brand promise of consistently providing exceptional end-to-end customer experience,” PSBank president Jose Vicente Alde said.

Alde said the bank is tapping the latest available digital technology to improve on process efficiencies to bring the cost of operations down while maximizing the full potential of sales distribution channels in generating more business for the bank.

PSBank’s total resources rose 7.4 percent to P234.76 billion as its deposit base went up nine percent to P200.09 billion.

Meanwhile, earnings of listed AUB and subsidiaries Cavite United Rural Bank (CURB) and the Rural Bank of Angeles in Pampanga grew 17.5 percent to P1.57 billion in the first semester.

“We were able to sustain our momentum in growing the business despite the intensifying competition and volatile financial markets. Our IT innovations have enabled us to differentiate ourselves in serving corporates and small and medium enterprises, as well as in our growing consumer lending business,” AUB president Manuel Gomez said.

This translated to a return on assets of 1.6 percent and a return on equity of 12 percent versus year-ago ratios of 1.5 percent and 11 percent, respectively.

Boosting the AUB Group’s bottom line was the 29.6 percent growth in interest income from loans, and receivables and 22.1 percent growth in other operating income.

Loans and receivables increased by 25.8 percent to P135.19 billion as of June from the year-ago level as commercial loans and other loan segments such as auto, housing, and salary loans all posted double-digit growths.

Net interest income rose by 12.3 percent to P3.56 billion, translating to a 4.3 percent net interest margin. Total assets increased by 10.9 percent to P209.461 billion.

Meanwhile, total deposits grew by 11.8 percent to P169.04 billion primarily due to the expansion in its network to 255 branches nationwide, as well as a more intensified deposit-generation campaign for branch banking and other business segments.