PSBank nets P2.85 billion in 9 months

MANILA, Philippines — Philippine Savings Bank (PSBank) delivered another solid income performance as its earnings more than doubled in the first nine months.

The country’s largest thrift bank owned by the Ty-led Metropolitan Bank & Trust Co. (Metrobank) recorded a 126-percent jump in net income to P2.85 billion from January to September compared to P1.26 billion in the same period last year amid improvements in loan portfolio quality, increases in non-core revenue streams, gains from operational efficiencies and improved loan volumes.

PSBank president Jose Vicente Alde said the bank’s retail proposition has been consistent as it remained steadfast in its commitment to make banking simpler for customers.

“With the improving levels of consumer spending, we have managed to book higher loan volumes specifically for auto and home during the first nine months of 2022. We hope to see this momentum to carry through till year-end even as market conditions remain volatile. We will keep our digital service channels robust, reliable and secure, dedicated to consistently provide exceptional customer experience at every touchpoint,” Alde said.

The bank’s net interest income reached P8.21 billion while revenues from net service fees, commissions and asset recoveries surged by 52 percent to P3.11 billion.

On the other hand, operating expenses remained in check, growing only by one percent year-on-year as it continues to implement productivity and operational efficiency improvements to manage costs even as investments are continuous to support digital initiatives.

The country’s largest thrift bank said its gross non-performing loans (NPL) ratio improved to 3.6 percent during the nine-month period from a year-ago level of 6.6 percent.

With improving asset quality, PSBank slashed its credit provisions by 65 percent to P969 million from P2.77 billion last year.

Net NPL ratio was at 1.6 percent in end-September, an improvement from last quarter’s two percent and far lower than 3.9 percent in end September last year.

PSBank’s total assets stood at P252.96 billion as deposits grew by six percent to P203.19 billion.