PSBank tracks 2019 targets as Q1 profit rises 10%

MANILA, Philippines — Philippine Savings Bank (PSBank) recorded 10.3 percent increase in earnings to P680.7 million in the first quarter from P617 million in the same period last year.

PSBank president Jose Vicente Alde said the growth from January to March was driven by improvement in revenues from interest income, other operating income, and efficient expense management.

“The bank’s commendable double-digit growth puts us on track of our 2019 targets, and is a deliberate result of our firm commitment to reinforce our sales efforts, improve on operating efficiencies, digitize products and channels, and consistently provide exceptional customer experience,” Alde said.

The bank’s interest income grew by 10.3 percent to P4.3 billion from P3.9 billion.

Total operating income declined by 6.8 percent to P3.41 billion from P3.66 billion as other operating income fell by 23.8 percent to P290.86 million from P381.74 million.

Trading and securities gains reached P14.63 million in the first quarter, reversing the P80.05 million losses booked in the same quarter last year.

Total resources of PSBank climbed by nearly five percent to P236.2 billion from P225.1 billion as gross loans increased by 6.8 percent to P159.3 billion from P149.2 billion.

The bank’s loan book was bolstered primarily by the growth in auto and mortgage loans portfolios. Net non-performing loans ratio was kept at 3.1 percent as delinquency continued to improve.

On the funding side, PSBank’s total deposits was steady at P185 billion as the bank strategically rebalanced its funding strategy with emphasis on low cost funds, retail clients and alternative sources.

PSBank’s total capital adequacy ratio (CAR) and common equity tier 1 (CET1) ratio stood at 18.4 percent and 15.9 percent, respectively and exceeded the minimum required level set by the Bangko Sentral ng Pilipinas (BSP).

The Metrobank unit has a footprint of 250 branches and over 570 ATMs strategically located nationwide.