PSBank earnings fall 21% to P944 million in Q1

MANILA, Philippines — Philippine Savings Bank (PSBank) saw its net income decline by 21.3 percent in the first quarter as the lender booked sharply higher credit provisions amid geopolitical and economic headwinds.

In a disclosure, PSBank said it posted a net income of P944 million in the January to March period, lower than the P1.21 billion recorded in the same quarter last year.

“The bank’s earnings reflected a prudent stance in its loan provisioning in response to the current geopolitical climate and economic headwinds,” the lender said.

Credit provisions jumped by 73 percent to P716 million as of end-March, underscoring the bank’s more cautious approach to potential risks.

Despite the higher provisioning, PSBank’s asset quality improved slightly, with its gross non-performing loan (NPL) ratio easing to 3.6 percent from 3.7 percent at end-2025.

The bank said its NPL ratio remained better than the thrift banking industry’s 6.4 percent, giving it room to sustain lending while managing risks.

PSBank’s total loan portfolio grew by three percent to P156 billion from a year earlier, supported by higher auto, mortgage and small and medium enterprise loans.

Net interest income likewise rose by three percent to P3.36 billion as the bank continued to benefit from loan growth.

On the funding side, total deposits increased by four percent to P177 billion.

PSBank said deposit growth was sustained by acquisition efforts through its branch network and digital onboarding platform.

The bank’s capital position remained strong, with total capital reaching P46 billion. Its capital adequacy ratio stood at 23.9 percent, while its common equity tier 1 ratio settled at 22.9 percent, both above the minimum requirements set by the Bangko Sentral ng Pilipinas.

PSBank said these ratios provide a cushion against emerging risks from present market volatility.