PSBank posts 18% increase in net income in the first half

PHILIPPINE SAVINGS Bank (PSBank) saw its net income rise by 18% year on year in the first half amid an increase in loans and improved asset quality.

The net income of the thrift arm of the Metrobank Group stood at P2.17 billion in the first half, up from P1.84 billion in the same period last year, it said in a statement on Monday.

This translated to a return on equity of 11.4% at end-June, up from 10.4% in the first six months of 2022.

Its financial statement was not available as of press time.

“The bank, through its recalibrated strategies and focus on enhanced customer experience, was able to benefit from the continued expansion of the economy and the sustained growth in consumer demand for the first six months. We are hopeful, despite the external headwinds, that this can be sustained for the rest of the year,” PSBank President Jose Vicente L. Alde said.

The bank’s core revenues, which includes net interest income from loans and investments including fees, grew by 8% year on year to P6.8 billion.

Meanwhile, operating expenses slipped by 2% due to ongoing cost optimization projects, PSBank said.

Total loans grew by 9% to P120 billion, driven by a 21% increase in auto loans amid steady demand for vehicle financing.

Despite the increase in loans, the bank’s gross nonperforming loan (NPL) dropped by 11% for an NPL ratio of 3.5%.

On the funding side, total deposits stood at P187 billion at end-June.

Total capital rose by 7% to P39 billion, with the bank’s capital adequacy ratio at 24.6% and common equity Tier 1 ratio at 23.7%.

“Both ratios are above the minimum level set by the Bangko Sentral ng Pilipinas and among the highest in the industry,” the bank noted.

The bank’s total resources stood at P235 billion at end-June.

PSBank’s shares closed unchanged at P57.90 each on Monday. — AMCS