PSBank projects 11% earnings growth this year

MANILA, Philippines - Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, said it expects a net income of P2 billion this year, 11 percent higher than last year, as the country’s economic environment continues on its recovery.

In a press briefing yesterday, PSBank president and chief executive officer Pascual M. Garcia III also confirmed that the bank would call on its P2-billion Tier 2 unsecured subordinated debt issue due in 2016.

Garcia said existing capital and cash raised from the debt issue would fund the establishment of 15 new branches this year, bringing its branch network to 195 branches on top of automated teller machines (ATMs) that had already surpassed 300 units to date.

Another 70 ATM units may be established this year, mainly in the Visayas and Mindanao region, he added.

In 2009, PSBank posted a net income of P1.8 billion, an increase of 46 percent from P1.2 billion recorded in 2009.

Total assets stood at P104.1 billion while investments hit P26.2 billion.

Garcia said he expects their loan portfolio to expand by another 15 percent this year due to the continued growth in consumer lending. Gross loans stood at P55.6 billion last year.

However, auto loans will continue to dominate the portfolio accounting for over 27 percent of consumer lending, followed by property loans and personal loans.

Lending to small and medium enterprises (SMEs), however, would remain at less than five percent of total portfolio.

Garcia said their growth achievement in 2010 would likely be sustained in 2011, although at a slightly lower pace, as the Philippine economy goes through a consolidation phase.

Total net revenues in 2010 grew 31 percent to P8.3 billion. This was mainly result of improved net interest income, which reached P5 billion with robust income from loans and investments. Other operating income for the year improved 117 percent arising from the growth in fee income, foreign exchange and trading gains.