PSBank posts 60% profit growth in 1st 9 months

Philippine Savings Bank (PSBank) registered a substantial 60-percent growth in net income from P313 million in the first nine months of 2004 to P501.6 million in the same period this year.

PSBank, the thrift and savings unit of the Metrobank Group, posted a full year net income of P485.5 million last year, or roughly 20 percent better than the P403.6 million earnings the year before.

In 2002, full year net income was registered at P302 million, P174 million in 2001, and P120 million in 2000.

Bank officials said the strong income performance was attributed to the 45-percent growth in net interest income.

Likewise, customer loans rose to P28 billion or 19 percent more than the year before due to the bank’s aggressive marketing thrust at its principal market – the consumer or retail market.

Investments in government securities, meanwhile, expanded by 51 percent.

"Continued focus on customers, strengthening of the balance sheet and solidifying our leadership position in the thrift banking industry, coupled with improved productivity, service quality and effective sales drove our growth," PSBank president Pascual M. Garcia III said in a statement.

Total resources grew by 23.6 percent while total deposits rose by 25.2 percent to P46.8 billion. Deposit growth was driven by the launch of Premium Checking Account, the simultaneous opening of 11 new branches, and the expansion of the bank’s ATM network by 32 to 126 nationwide.

Return on equity grew by 15.7 percent from 10.7 percent while the capital adequacy ratio (CAR) remained at 13.6 percent.