In fact, the Philippine Savings Bank (PSBank) plans to expand its branch network by 20 percent this year alone, evidence of a bullish long-term attitude towards the Philippine economy. PSBank is a subsidiary of the Metropolitan Trust and Banking Corp. (Metrobank), the biggest commercial bank in the country.
"We have the momentum to achieve our goals this year," said PSBank president Pascual M. Garcia III.
Garcia said net earnings in 2003 rose to P403.6 million, 33 percent better than the previous year.
PSBank registered a whopping 72.8 percent growth in its net income, or from P174.7 million in the whole of 2001 to P302 million last year. In 2000, it was recorded at P120 million.
Total deposits grew by 24 percent to P5.5 billion last year, and the major thrift bank plans to make that grow to between P7 to P8 billion this year. Total loans also grew by 24 percent to P3.7 billion in 2003 and that would likely grow to P5 billion by end 2004.
Total resources reportedly stood at P4.2 billion, making it the second biggest thrift bank in the country, but better than half of the country’s 40 or so commercial banks.
Other targets for 2004 are expanding the branch network, the ATM network and introduce more consumer and lending products
An acquisition is not in its list of priorities this year, but "any significant opportunity is worth looking at."
Garcia said that they are not actively looking at an acquisition though preferring to introduce consumer products, and improve existing one.
"From a widely-distributed branch network of 110 nationwide, PSBank is looking to open 11 more at the start of the second quarter with the ultimate goal of a minimum 20-percent expansion.
Acquiring branch licenses is the order of the day rather than buying a bank lock-stock-and-barrel, he added.
Its non-performing loans (NPLs) stood at a mere 5.7 percent of its total loan portfolio versus an industry average of roughly 15 percent. Real and other properties owned or acquired (ROPOA) has been reduced to a mere P1.6-billion and it could be reduced by a third by the end of the first half.
"Most of the problems with regards the disposition of the foreclosed properties and such, are the legalities and pesky paper works and court battles," the bank president said.
– Ted Torres
The new drivers for additional growth for the year will be new products for the small and medium enterprise (SME) market.
PSBank will be introducing an SME credit line through a flexible checking account. The credit line is designed to reduce the borrowing or funding costs of SME clients while increasing access to credit without the usual tedious and time-consuming paperwork.
"That loan facility should fall in line with the administrations strong emphasis on the growth and development of the SMEs which has been fueling the country’s economy despite strong external and internal negative elements," Garcia added.