PSBank earnings up 18 percent in 9 months

MANILA, Philippines — The earnings of Philippine Savings Bank (PSBank) went up by 18.2 percent to P3.37 billion from January to September compared to last year’s P2.85 billion, driven by the continuous expansion of its core businesses.

The strong performance of the country’s largest thrift bank was fueled by the growth in its auto loan portfolio, complemented by effective expense management.

“Despite the unpredictable headwinds, we remain focused on sustaining our strong results while we continue to innovate on products, services and processes consistent with our commitment to deliver effortless banking to our customers,” PSBank president Jose Vicente Alde said.

During the nine-month period, PSBank’s net interest income rose by 7.4 percent to P8.82 billion, while earnings from net service fees and commissions rose to P1.33 billion.

The mid-sized bank managed to cut its operating expenses by one percent as it remained steadfast in its productivity and operational efficiency initiatives.

The bank’s loan book increased by 12 percent to P123 billion as of end-September as auto loans zoomed by 24 percent, fueled by increased vehicle sales.

Amid the double-digit increase in loan portfolio, the bank’s asset quality remained healthy with a gross non-performing loans (NPL) ratio of 3.4 percent, better than pre-COVID levels.

As of end of the third quarter, total assets amounted to P236 billion, as total deposits reached P188 billion.

PSBank’s capital improved to P40 billion with total capital adequacy ratio and common equity tier 1 ratio at 24.6 percent and 23.7 percent, respectively, both ratios among the highest in the industry and above the minimum level set by the Bangko Sentral ng Pilipinas (BSP).

Metrobank earlier reported a 35.6-percent jump in earnings to P31.79 billion from January to September versus last year’s P23.44 billion, driven by asset expansion, improving margins and healthy non-interest income growth as asset quality continued to improve.

Metrobank president Fabian Dee earlier said the sustained growth shows that the Ty-led bank remains strong and resilient despite the unpredictable market conditions.

“We will continue to work on keeping our sound capital and liquidity positions as we look for more market opportunities,” Dee said.