PSBANK 2020 PROFIT DOWN BY 63%

Metrobank group’s thrift bank arm Philippine Savings Bank (PSBank) posted P1.11 billion in net profit last year, down by 63 percent from the previous year, as the bank tripled provisions for probable loan losses amid the challenging economic conditions caused by the coronavirus pandemic.

Taking out the impact of about P6.4 billion in provisioning expense, PSBank’s operating income increased by 31 percent to P7.45 billion last year.

“On the back of a strong balance sheet and capitalization, the bank stayed resilient amidst the challenges of 2020. As a matter of strategy, we took a conservative stance on credit provisioning in anticipation of risks associated with the pandemic. The bank prioritized the safety of its employees and customers by quickly instituting COVID-19 safety protocols. We strengthened our digital platforms and made them reliable as the demand for digital banking services exponentially rose,” PSBank president Jose Vicente Alde said in a disclosure to the Philippine Stock Exchange.

PSBank’s gross revenue increased by 13 percent to P16.57 billion, driven by the 21 percent growth in net interest earnings to P13.75 billion.

The growth in interest income was driven by the significant growth in low-cost deposits and the decline in interest of term deposits. Low-cost deposits rose by 16 percent to P67.25 billion.

In line with initiatives to improve operating efficiencies, operating expenses were kept in check and increased by only 2 percent.

With its capital base of P34.51 billion, PSBank’s total capital adequacy ratio and common equity tier 1 ratio improved year-on-year to 19.4 percent and 18.1 percent, respectively. Both are above the statutory requirement of 11 percent set by the Bangko Sentral ng Pilipinas.