PSBank profit jumps 23% to P1B in 2007

Philippine Savings Bank (PSBank), the country’s second largest thrift bank, reported a 23 percent jump in its 2007 net profit to P1.008 billion from P819 million the previous year, mainly due to higher fee-based income and net interest income.

Net revenues rose 19 percent to P772 million as interest income from consumer loans (auto, mortgage and personal loans) expanded 22 percent.

For this year, PSBank is eyeing a 15 percent jump in net income, banking on the sustained growth in consumer loans coupled with increased lending to the small and medium enterprises sector.

The bank’s strong performance last year was also attributed to higher earnings from investment securities.

“There has been a continued build-up of PSBank’s loans in 2007, which grew 16 percent to P36.4 billion,” said PSBank president Pascual Garcia III in a statement to the Philippine Stock Exchange.

During the year, PSBank launched its “24-hour Siguraduhan” campaign for auto loans, which it said remains unmatched for auto loan approvals in the market.

PSBank likewise strengthened the TGIF program which guarantees a five-day turnaround time for credit decisions on mortgage applications.

In addition, PSBank introduced the enhanced Money Card, the first and only collateral free personal loan in an ATM card with a revolving line and a fixed term loan facility.

PSBank said its operating expenses increased 26 percent as it availed of the government’s tax amnesty program under RA 9498. “Without this additional payment, the increase would have been limited to 14 percent with continued investments in technology, launch of its remote banking facility and branch expansion in 2007, “ Pascual said.

As of end-December last year, PSBank’s total network reached 163 compared with only 150 in 2006, while its ATMs increased to 165 nationwide from 152 a year ago. 

To complement its branch network, PSBank Remote Banking was launched last year to provide its clients an alternative channel from which they can view their account information, pay bills, transfer funds, order checkbooks, manage deposit accounts and apply for loans in a secure Internet environment.