PSBank seen growing core interest income

Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, is seen to enjoy continued growth in its core interest income due to the expansion of its loan portfolio.

In a statement, Philippine Rating Services Corporation (PhilRatings) also cited PSBank’s solid market position, underpinned by its well-defined growth strategy amid the favorable outlook for domestic consumer credit.

PSBank’s funding profile is also expected to continue to improve, supported by increased levels of current and savings deposits.

Because of these positive factors, PSBank received the highest issuer rating of PRS Aaa (corp.) PhilRatings.

An issuer rating is an opinion on the general and overall creditworthiness of the issuer, evaluating its ability to meet all its financial obligations within a time horizon of one year.

The focus is on financial strength and stability under normal and stressed conditions to be able to meet existing and prospective financial obligations.

A company rated PRS Aaa (corp.) has a very strong capacity to meet its financial commitments relative to that of other Philippine corporates.

PSBank is considered a significant player in the domestic consumer market, with bulk of its loans portfolio represented by consumer loans.

The bank believes that its auto loan portfolio, which had the largest share of the bank’s consumer loans as of end2016, still has ample room for growth, taking into account the bank’s current share of the auto loans market.

PSBank’s solid market position is expected to receive strong support from its well-defined strategy; in particular, the bank’s continued focus on customer experience and digitalization of products, channels and processes.

While PSBank continues to target the retail deposit and consumer lending needs of the upper- and middle-markets, the bank’s recent product and service offerings to these markets, however, have become more technology-based.

This strategy is expected to bolster the bank’s competitive position by satisfying clients’ increasing demand for more control and speed, while also integrating efficiencies in its operations.

PSBank is likewise looking to serve the SME market to a greater degree, over the long term.