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June 22, 2024

PSBank doubles Q1 earnings to P888M on lower provision for credit losses

Philippine Savings Bank (PSBank) led by bankero Jose Vicente Alde more than doubled its net income to P888 million in the first quarter of the year from a year-ago level of P439 million.

“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,” the bankero said.

The thrift banking arm of the Ty-led Metrobank Group said that the growth earnings was driven by revenues from other operating income and improved asset quality.

PSBank’s net interest income reached P2.7 billion while service fees and

commissions rose by 14 percent as loan demand expanded when quarantine

restrictions were loosened.

The listed bank’s non-interest income profit surged by 190 percent resulting

from increased business activities.

“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,” Alde said.

PSBank reported a six percent increase in operating expenses due to higher volume albeit being kept in check through continuous improvements in productivity and operational efficiency.

The bank controlled by the family of the late tycoon George Ty said its credit provisioning fell by 68 percent to P346 million in the first quarter of the year from P1.1 billion in the same quarter last year as gross non-performing loans (NPLs) dropped by 30 percent and returned to pre-pandemic levels.

Alde also reported that PSBank’s balance sheet became stronger as total assets rose by 16 percent, with total deposits jumping by 24 percent to P217 billion with low-cost checking and savings deposits increasing by nine percent.

Alde added that the bank’s capital position improved by two percent to P35 billion.

This translated to an improved Capital Adequacy Ratio and Common Equity Tier 1 Ratio at 24.5 percent and 23.4 percent, respectively.