MANILA, Philippines - Philippine Savings Bank sees a sustained double-digit growth in its loan portfolio next year amid the thrift bank’s expanding customer base PSBank president Vicente Cuna Jr. said the bank continues to aim for a double-digit growth for loans in 2016.
“To achieve that, we have several initiatives. It’s through expansion of our customer base and also through increasing our selling capability. No change (in strategy), it is more of the same,” Cuna added.
PSBank, a unit of Metropolitan Bank & Trust Co., recorded a 17.6 percent growth in its gross loan portfolio to P111.8 billion in the first nine months, led by the robust growth in auto and mortgage loans. Its consumer loan bookings jumped 29 percent.
Even with the growth in its loan portfolio, PSBank kept its non-performing loans (NPL) ratio low at 1.1 percent. As of end September, NPL coverage was at 84 percent.
The thrift bank booked a 7.6 percent decline in earnings to P1.73 billion in the first nine months from P1.88 billion in the same period last year due to lower non-interest income as well as the absence of non-recurring income.
PSBank reported that last year’s earnings included one-time gains from the sale of its interest in Toyota Financial Services Corp. (TFSPC) and Victorias Milling Co. (VMC) in relation to Basel III preparation.
“The decrease in net income was attributed to higher other operating income in 2014 due to the significant gains on the sale of bank’s equity investments in TFSPC and VMC,” the bank said.