PSBank books higher earnings

PHILIPPINE Savings Bank (PSBank) saw its net income climb in 2017 on the back of the strong performance of its core revenues.

In a statement on Monday, the Ty-led PSBank reported a net income of P2.7 billion last year, up 8.3% from the P2.5 billion booked in 2016.

The thrift banking arm of Metropolitan Bank & Trust Co. attributed the profit increase to the continued strong performance of its core revenues, supported by its net interest and fee-based incomes, which grew 14.6% and 19.9%, respectively.

The lender’s loan portfolio expanded by 13.3% to P146.3 billion in 2017 from P129.2 billion in the previous year, as automotive and mortgage loans continue to drive its consumer lending growth. Meanwhile, loans to small and medium enterprises boosted its commercial lending segment.

PSBank’s non-performing loan ratio was at 1.2% as of end-2017.

Deposits increased to P188.9 billion in 2017, 19.3% higher than the P158.4 billion booked in 2016, with low-cost funds rising by 16.3%.

Overall, PSBank ended last year with P223.3 billion in total assets, up 13.4% from the previous year, while total equity went up 11.8% to P22.4 billion.

The bank’s Tier 1 ratio was at 11.1%, while its total capital adequacy ratio (CAR) stood at 13.9%, well above the 7.5% and 10% minimum requirements imposed by the central bank, respectively.

Return on equity was at 12.5%, while earnings per share rose to P11.05 from P10.20 yearon-year.

“We are pleased to see that the results of our efforts in digitization and customer service are becoming evident with the year in and year out strong performance of our core business, making our growth stable and sustainable” PSBank President Vicente R. Cuna said.

Currently, PSBank has a distribution network of 250 branches and 600 automated teller machines nationwide.

As of September 2017, PSBank was the second-biggest thrift bank in the country in asset terms.

PSBank shares went up P3.75 or 4.40% to P89 apiece yesterday. —