PSBank nets P977 million in first 3 months

MANILA, Philippines — Ty-led Philippine Savings Bank (PSBank) booked a 10-percent increase in earnings to P977 million in the first quarter from P888 million in the same quarter last year.

The country’s largest thrift bank attributed the double-digit rise in net income to expansion in consumer loan portfolio, improvements in credit quality and prudent expense management.

PSBank president Jose Vicente Alde said elevated consumer spending continued to persist, fuelling significant retail loan demand for the early part of 2023, even as interest rates and inflation remain high.

“This works well for PSBank which primarily caters to the needs of the consumer market, specifically for their auto and mortgage loan requirements among others. As we remain cautiously optimistic for any possible short-term volatility attributed to overseas developments, we are equally confident of the organization’s ability to adapt to challenges, pursue business opportunities, and deliver well for our customers and stakeholders,” Alde said.

The bank’s loan book rose by four percent to P116 billion due to higher consumer demand. Its auto loan portfolio grew by 13 percent year-on-year on the back of higher demand for car financing.

Likewise, improvements in asset quality were sustained with gross non-performing loans ratio improving to 3.2 percent from five percent last year.

PSBank reported an eight-percent increase in net interest income to P2.95 billion, as well as a seven-percent rise in net service fees to P464.6 million.

On the other hand, the bank was able to trim its operating expenses by five percent to P2.19 billion as it continued to pursue cost optimization strategies resulting from initiatives on operational efficiency.

The bank’s total assets stood at P255.76 billion as its deposit base reached P209.81 billion.

PSBank said its capitalization remains strong at P37.82 billion, with total capital adequacy ratio of 24.6 percent and common equity tier 1 ratio of 23.8 percent, well above the regulatory minimum and are among the highest in the Philippine banking industry.