PSBank net income up 32% to P1.24 billion in 2009

MANILA, Philippines - Philippine Savings Bank (PSBank) posted an unaudited net income of P1.24 billion in 2009, or 32 percent higher than the P940-million profit recorded in 2008, the bank said yesterday.

Total revenues grew 25 percent to P6.36 billion, buoyed by the 30-percent improvement in net interest income and an 11-percent increase in non-interest income, it added.

A stable interest rate environment and the healthy expansion of its core lending business helped the thrift bank of the Metrobank Group as total assets rose 25 percent to P93.09 billion.

Gross loans also increased 15 percent while consumer loans – auto, mortgage and personal loans – expanded 10 percent to P37.99 billion. Seventy-eight percent of its loan portfolio is devoted to consumer lending.

PSBank president Pascual M. Garcia III said the recordsetting numbers was due to strong lending. “This financial milestone definitely augurs well for 2010 and in the medium term,” he added.

PSBank also participated in bank consortiums involved in corporate issuances including the Manila Electric Corp. (Meralco), Aboitiz Power and Philippine Long Distance Telephone Co. (PLDT).

Earnings from investment securities grew 19 percent, or from P19.5 billion in 2008 to P23.30 billion.

Deposits, meanwhile, expanded 25 percent to P77.39 billion. Twenty eight percent or P62.82 billion were in peso deposits and another P14.57 billion worth of deposits were dollar denominated.

Non-performing loans (NPL) ratio remained at a healthy 5.5 percent, with an NPL coverage ratio of 68 percent.

Total capital stood at P11.01 billion, thus allowing its capital adequacy ratio (CAR) at 14.44 percent. Return on average equity (ROAE) was recorded at 12.73 percent last year.

Last Tueday, PSBank declared a quarterly cash dividend equivalent to a six-percent dividend yield for its shareholders in 2009.

Its shares ended the year at P57.50, a 40-percent appreciation from P41 in end-2008.

PSBank has a nationwide branch network of 170 and 306 automated teller machines (ATMs).