PSBank earnings rise 2% to P2.7 billion in 2018

MANILA, Philippines — Earnings of Philippine Savings Bank inched up two percent to P2.7 billion last year from P2.65 billion in 2017 amid slower growth in interest earnings due to the tightening cycle by the Bangko Sentral ng Pilipinas (BSP) to prevent inflation from spiraling out of control.

PSBank president Jose Vicente Alde said the thrift bank arm of Metropolitan Bank & Trust Co. (Metrobank) focused on improving the bank’s efficiencies to respond to higher benchmark rates.

“PSBank proactively responded to last year’s challenges brought about by higher interest rates and inflation by focusing on sales and improving on its operating efficiencies, without compromising its commitment in providing excellent customer service,” Alde said.

The Ty-led bank said its loan book climbed 7.1 percent to P156.7 billion last year from P146.3 billion in 2017, while its deposit base went up 6.2 percent to P200.7 billion from P188.9 billion.

PSBank’s total assets increased 6.5 percent to P237.7 billion from P223.3 billion. Its total capital adequacy ratio was at 13.9 percent and common equity tier 1 ratio was at 11.3 percent, both are above the minimum required level of the Bangko Sentral ng Pilipinas (BSP).

It recorded a return on equity of 11.4 percent and a return on asset of 1.2 percent.

PSBank, the country’s second largest thrift bank in terms of assets, has 250 branches and 575 ATMs strategically located nationwide.

PSBank recently raised P8 billion via the sales of shares to existing shareholders to further solidify its capital adequacy and financial strength. It has lined up several fund raising activities to further boost its consumer banking business.

It has announced plans to issue medium-term fixed or floating rate notes worth as much as P10 billion to access medium-term and stable funding as it further expands its consumer banking segment.

PSBank has also launched a P20 billion long-term negotiable certificates of time deposits (LTNCD) program where it has so far raised P5.1 billion last August.