PSBank’s profit surges in 1^st half

PHILIPPINE SAVINGS BANK (PSBank) saw its net income more than double in the first half on the back of better revenues and controlled expenses, it said on Thursday.

The thrift banking arm of the Metrobank Group booked a net profit of P1.84 billion in the first semester, surging by 109% from the P880 million posted in the same period last year.

PSBank said the increase was driven by the improvement of its loan portfolio quality, a growth in revenues amid better non-interest income, and a contained increase in operating expenses.

“We observed a significant increase in consumer lending activity during the first semester of 2022. The bank remains optimistic that this can be sustained for the remainder of the year despite ongoing geopolitical events and other external factors,” PSBank President Jose Vicente L. Alde said.

“We will continue to be proactive in our strategy to adapt to the changing market conditions with our focus on productivity, operational discipline, innovation and customer experience. As the economy grows, we expect increased business opportunities; and the bank is well-prepared to provide the banking needs of consumers,” Mr. Alde added.

The bank’s net interest income reached P5.45 billion as net service fees and commissions grew by 13%.

“A strong revenue growth of 101% in other non-interest income lines was likewise achieved. These were driven by increased business activities from the opening up of the economy, and further relaxation of mobility restrictions,” PSBank said.

Its operating expenses “remained under control,” growing by just 3% year on year amid efficiency initiatives.

The bank said its gross non-performing loans (NPL) “contracted by almost half” from a year ago. This led PSBank to set aside less loan loss provisions worth P625 million in the first semester from P2.17 billion a year prior.

The bank’s net NPL ratio was at 1.96% as of June, which it said was “better than pre-pandemic levels.”

Meanwhile, deposits were “stable” at P220 billion, with its low-cost deposits rising by 10% year on year.

PSBank’s assets stood at P268 billion as of June 2022, while capital grew by 4% to P36.06 billion.

Its capital adequacy ratio was at 24.6% at end-June while its common equity Tier 1 ratio stood at 23.5%, both well above the regulatory requirements of the central bank.

PSBank’s shares went up by P1.70 or 3.07% to end at P57 apiece on Thursday. — BVR