PSBank income doubles in Q1

MANILA, Philippines — Earnings of Philippine Savings Bank (PSBank) more than doubled to P888 million in the first quarter from P439 million in the same period last year amid a sharp drop in provision for potential loan losses.

The thrift unit of Metropolitan Bank & Trust Co. (Metrobank) said the robust performance from January to March was driven by revenues from other operating income and improved asset quality.

PSBank president Jose Vicente Alde said the bank sees the growth and strong financial performance being sustainable with strategies firmly in place.

“Our recalibrated business models to include data-driven approaches to credit and collection continue to serve us well as we ride on the momentum of improving consumer confidence which began with the opening up of the economy by end-2021. With our strategies firmly in place, we see our growth and strong financial performance to be sustainable even as there may be potential volatility brought by adverse offshore developments,” Alde said.

The bank said its net interest income reached P2.7 billion, while service fees and commissions rose by 14 percent as loan demand expanded when COVID quarantine restrictions were loosened.

Non-interest income also soared by 190 percent due to  higher business activities.

This was offset by a six percent uptick in operating expenses due to higher volume albeit being kept in check through continuous improvements in productivity and operational efficiency.

The thrift bank reported a 68 percent plunge in provision for potential loan losses to P346 million from January to March compared to a year-ago level of P1.1 billion.

PSBank reported that its gross non-performing loans (NPLs) is back to pre-pandemic levels, posting a decline of 30 percent.

Its balance sheet became stronger as total assets expanded by 16 percent to P263 billion year-on-year as its deposit base grew by 24 percent to P217 billion.

The bank reported that its capital position inched up by two percent to P35 billion, translating to a capital adequacy ratio of 24.5 percent and common equity Tier 1 ratio of 23.4 percent.