PSBank on solid ground vs rise in sound loans
“PSBank’s sound capitalization and aggressive provisioning, however, are seen to temper pandemic-related risks on its loan book, at least in the short-term. PSBank has adopted a conservative provisioning stance for its loans,” the bank said in a disclosure to the Philippine Stock Exchange.
Philstar.com/Deejae Dumlao
PSBank on solid ground vs rise in sound loans
Lawrence Agcaoili (The Philippine Star) - October 21, 2020 - 12:00am

MANILA, Philippines — Philippine Savings Bank (PSBank) said its sound capitalization and aggressive provisioning would temper pandemic-related risks, particularly the rise in bad loans next year.

The thrift banking arm of Ty-led Metropolitan Bank & Trust Co. (Metrobank) sees its non-performing loans rising this year due to the impact of the COVID-19 pandemic on its loan book.

“PSBank’s sound capitalization and aggressive provisioning, however, are seen to temper pandemic-related risks on its loan book, at least in the short-term. PSBank has adopted a conservative provisioning stance for its loans,” the bank said in a disclosure to the Philippine Stock Exchange (PSE).

From January to June, PSBank’s provision for credit and impairment losses amounted to P2.8 billion, exceeding the full-year allocation of P2.2 billion made last year.

Its NPL ratio rose to 3.7 percent in the first semester from 2.8 percent in the same period last year as bad loans inched up to P161.1 billion from P160.8 billion.

Philippine Ratings Services Corp. (PhilRatings) assigned the highest issuer credit rating of Aaa, with stable outlook, to PSBank.

“The ratings reflect PSBank’s strong market position, its highly-experienced management team, and its sound capitalization and aggressive provisioning which are seen to temper the pandemic’s impact on the loan portfolio, at least in the short-term,” the bank said in a statement.

PSBank’s experienced management team led by president Jose Vicente Alde is a strong pillar of support for the bank amid the challenges brought by the COVID-19 pandemic, according to PhilRatings.

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