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June 22, 2024

Less provisioning, sterling assets push PSBank earnings 39% to P1.5B

Ty-led Philippine Savings Bank (PSBank) led by bankero Jose Vicente Alde reported a 39 percent surge in net income to a little over P1.5 billion in 2021 from P1.1 billion in 2020.

“Our financial performance in 2021 is a testament of the strength of the bank’s balance sheet, and the agility of the organization to quickly adapt to volatile market conditions. Our early and proactive efforts to adjust our strategies and operations allowed us to be at the forefront of opportunities as they unfold,” Alde said.

The thrift bank arm of Ty-owned Metropolitan Bank & Trust Co. (Metrobank) said its operating income soared by 22 percent, while its operating expenses narrowed by three percent on improved efficiencies.

The second largest thrift bank in terms of assets at end-September last year also reported reduced loan loss provisions amid improved asset quality as net non-performing loans (NPL) ratio improved to 3.4 percent from 5.2 percent.

PSBank also reported a 29 percent jump in deposits to P216.8 billion from P167.46 billion, while loan applications rose amid the easing of COVID-19 restrictions.

“As the economy opened up and pandemic alert levels downgraded, consumer loan demand started to pick up in the second half of 2021,” Alde said.

The bank’s asset base grew by 19 percent to P261.81 billion from P219.41 billion, while its capital position improved to P34.89 billion.

PSBank’s capital adequacy and common equity tier 1 (CET1) ratios improved significantly to 24.3 percent and 23.2 percent, respectively.