MANILA, Philippines - Philippine Savings Bank, the thrift arm of the Metrobank Group, posted a P1.1 billion net income in the first half of 2014, down 163 percent from P2.9 billion a year earlier.
Nonetheless, net interest income rose 21 percent to P3.8 billion from P3.2 billion in the same period last year.
Loan portfolio recorded a double-digit growth of 14 percent from P81 billion to P92.5 billion as of end-June. Total assets expanded 20 percent to P141 billion.
Deposits increased 22 percent to P113.1 billion, with low cost deposits rising 25 percent.
PSBank issued P3-billion Basel III-compliant unsecured subordinated Tier 2 notes last May. The notes, which were rated PRS Aaa by Philippine Ratings Corp. were met with overwhelming demand and were more than three times oversubscribed.
With this issuance, the bank’s total capital adequacy ratio (CAR) further improved to 19 percent, well above the 10-percent minimum required level for local banks.
PSBank president Vicente R. Cuna Jr. said after the capital-raising activity, they are now well positioned to meet the market’s aggressive demand for consumer loans.
“We, however, remain vigilant in our credit processes to ensure we maintain the high quality of our loan portfolio,” he added.
Net non-performing loan (NPL) ratio was 0.3 percent despite the increase in loans, while NPL coverage stood at 107 percent.
PSBank’s distribution network now includes 226 branches and 569 onsite and offsite automated teller machines (ATMs) all over the country.
It recently launched its mobile banking facility which allows customers to access products and services using their mobile phones and tablets. The PSBank Mobile App is now available on Apple’s App store and Android’s Google Play and will be available soon for Blackberry and Windows-based smartphones.