PSBank expands branch network, eyes double-digit growth this year

Philippine Savings Bank (PSBank) plans to expand its branch network by 20 percent this year in line with a forecast double-digit growth in earnings, a bank official said.

PSBank is a subsidiary of the Metropolitan Trust and Banking Corp. (Metrobank), the biggest commercial bank in the country.

"We have the momentum to achieve our goals this year," said PSBank president Pascual M. Garcia III.

Garcia said they are looking at significant growth in net earnings in 2003 and further improve this year.

PSBank registered an impressive 72.8-percent growth in its net income, or from P174.7 million 2001 to P302 million last year. In 2000, net earnings stood at P120 million.

Total deposits grew by 24 percent to P5.5 billion last year and are seen to grow to between P7 billion to P8 billion this year. Total loans also grew by 24 percent to P3.7 billion in 2003, likely growing to P5 billion by end-2004.

Total resources reportedly stood at P4.2 billion, making it the second biggest thrift bank in the country.

Other targets for 2004 are expanding the ATM network and introduce more consumer and lending products.

An acquisition of another bank is not in its list of priorities this year, but "any significant opportunity is worth looking at," Garcia said.

He said that they are not actively looking at an acquisition, preferring to introduce more consumer products and improve on existing ones.

From a widely-distributed branch network of 110 nationwide, PSBank is looking to open 11 more at the start of the second quarter with the goal of a minimum 20-percent expansion.

Its non-performing loans (NPLs) stood at a mere 5.7 percent of its total loan portfolio versus an industry average of roughly 15 percent. Real and other properties owned or acquired (ROPOA) have been reduced to a mere P1.6 billion and could be reduced by a third by the end of the first half.

"Most of the problems with regards the disposition of the foreclosed properties and such are the legalities and pesky paperworks and court battles," the bank president said.

The new drivers for additional growth for the year will be new products for the small and medium enterprise (SME) market.

PSBank will be introducing an SME credit line through a flexible checking account. The credit line is designed to reduce the borrowing or funding costs of SME clients while increasing access to credit without the usual tedious and time-consuming paperwork.

"That loan facility should fall in line with the administration’s strong emphasis on the growth and development of the SMEs which has been fueling the country’s economy despite strong external and internal negative elements," Garcia added.