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June 23, 2024

PSBank posts P3.37 billion earnings surge despite challenges

In a recent disclosure to the Philippine Stock Exchange (PSE), Philippine Savings Bank, the thrift banking arm of the Metrobank Group, announced an impressive 18 percent increase in net income, reaching P3.37 billion for the first three quarters of 2023. This remarkable financial growth has also contributed to an 11.7 percent boost in return on equity.

This substantial profit surge can be attributed to the bank’s consistent expansion of its core operations, particularly the growth in the auto loan portfolio, complemented by effective expense management.

Bankero and PSBank President, Jose Vicente L. Alde, expressed the bank’s determination to maintain strong results in the face of unpredictable challenges. He emphasized the commitment to innovate and deliver effortless banking to their customers by enhancing products, services, and processes.

Net interest income for the first nine months of 2023 increased by seven percent, rising to P8.82 billion from P8.21 billion during the same period the previous year. Additionally, revenues from net service fees and commissions reached P1.33 billion, although no comparative figure was provided. In the corresponding period last year, PSBank reported revenues of P3.11 billion from net service fees, commissions, and asset recoveries.

In a bid to enhance operational efficiency, the bank effectively reduced operating expenses by one percent.

The bank’s total loan portfolio demonstrated impressive growth, registering a 12 percent year-on-year increase to P123 billion as of September 2023. This growth was primarily driven by a 24 percent increase in auto loans, spurred by rising vehicle sales.

Maintaining a healthy asset quality, PSBank reported a gross non-performing loans (NPL) ratio of 3.4 percent, which is better than pre-pandemic levels.

As of the end of the third quarter in 2023, the total assets of the bank declined to P236 billion from P253 billion, while total deposits reached P188 billion, slightly lower than the P203.19 billion recorded during the first nine months of 2022.

Furthermore, PSBank’s capital position improved, increasing to P40 billion from P36.8 billion in the first nine months of the previous year. The Total Capital Adequacy Ratio and Common Equity Tier 1 Ratio stood at 24.6 percent and 23.7 percent, respectively, both of which exceed the minimum levels set by the Bangko Sentral ng Pilipinas and rank among the highest in the industry.