PSBank optimistic despite volatile, cautious market

MANILA, Philippines — The thrift banking arm of Metropolitan Bank & Trust Co. (Metrobank) remains optimistic amid the volatile and cautious market as the country continues to struggle to contain the COVID-19 outbreak.

Jose Vicente Alde, president of Philippine Savings Bank (PSBank), said the market is still volatile and cautious despite signs of recovery especially in the second quarter.

“We are optimistic of the prospects ahead as we see considerable progress in the vaccination rollouts and the heightened adherence to safety protocols,” Alde said.

The Philippines slipped into recession with a record GDP contraction of 9.6 percent last year.

The net income of PSBank amounted to P879 million in end-June, primarily driven by an increase in fee income, reduction in expenses and lower provisioning.

The bank’s net interest income fell by 14 percent in the first half as consumer loan demand remained muted due to uncertainties brought about by the COVID-19 pandemic.

The country’s second largest thrift bank said fee-based income jumped by 26 percent, while operating expenses slipped by five percent. This resulted in a cost-to-income ratio of 57.3 percent.

The bank’s net non-performing loan (NPL) ratio improved to 4.2 percent in end- June   from 5.2 percent in end-2020 amid sustained improvement in loan portfolio quality.

Year-on-year, total assets grew by 17 percent to P271.7 billion as deposits jumped by 24 percent to P220.4 billion.

PSBank’s capital position remained strong at P34.76 billion as of June translating to a capital adequacy ratio (CAR) of 22.1 percent and a common equity tier 1 (CET1) ratio of 21.1 percent.

“With customer and employee safety as our priority, we are committed to ensure that our contactless service platforms like the mobile and online banking are available 24/7, and robust with functionalities that allow them to do their banking transactions at home,” Alde said.

PSBank recently enabled the real-time reloading of Autosweep and Easytrip Toll RFIDs through the PSBank Mobile App, and the payment of loans in all 7-Eleven convenience stores.