PSBank books P4-B net profit as of September

PHILIPPINE Savings Bank (PSBank), the thrift arm of Metropolitan Bank & Trust Co. (Metrobank), saw its net income grow by 19% year on year to P4 billion in the first nine months, it said on Monday.

“The bank’s solid financial performance was driven by higher operating income and better asset quality,” PSBank said in a disclosure to the stock exchange.

Its financial statement was unavailable as of press time.

“We remain well-positioned to serve the growing needs of our customers as we approach the final stretch of 2024. PSBank is gearing up for a more favorable interest rate environment, which is seen to further boost consumer loan demand,” PSBank President Jose Vicente L. Alde said.

The Bangko Sentral ng Pilipinas (BSP) has so far slashed benchmark interest rates by a total of 50 basis points (bps) since it kicked off its easing cycle in August, bringing its policy rate to 6%.

BSP Governor Eli M. Remolona, Jr. has signaled a possible 25-bp cut at the Monetary Board’s policy meeting on Dec. 19, which is its last review for the year.

PSBank’s core revenues, which include net interest income and service fees and commissions, went up by 4% year on year to P10.52 billion in the nine-month period.

Meanwhile, its operating expenses increased by 4% to P6.91 billion.

The bank’s gross loans expanded by 12% to P138 billion at end-September, which it attributed to growth in its auto, mortgage, and business loans.

“Asset quality improved as gross nonperforming loans ratio dropped to 2.8% from 3.4% a year ago,” it added.

On the funding side, deposits with the bank stood at P167 billion as of September.

PSBank had P219 billion in assets and P43 billion in capital funds at end-September.

Its capital adequacy ratio was at 24.2% and its common equity Tier 1 ratio stood at 23% in the period, both well above the central bank’s minimum requirements.

Its parent Metrobank’s attributable net profit stood at P12.124 billion in the three months ended September, up 11.35% from P10.888 billion in the same period last year

This brought its net income for the first nine months to a record P35.729 billion, up by 12.4% year on year from P31.786 billion.

Metrobank’s shares went down by 50 centavos or 0.66% to end at P75.50 each on Monday.

Shares in PSBank likewise declined by 50 centavos or 0.82% to close at P60.50 apiece. — BVR