PSBank Q1 income balloons by 94%

MANILA, Philippines - Philippine Savings Bank (PSBank) is optimistic it can surpass its full year 2012 targets on the back of its impressive first quarter performance.

The thrift bank of the Metrobank Group reported a whopping 94-percent increase in net earnings in the first three months of 2012 to P546 million from the P281 million recorded in the same period last year. 

PSBank president and chief executive officer Pascual M. Garcia III said its performance and the strong demand in the first quarter of the year “is very encouraging.” 

Garcia said there is strong demand for loans, including auto loans reporting high releases despite supply problems, and mortgage loan releases expanding by 32 percent. 

“Should this trend continue, we may exceed our net income target of P2.2 billion for the year,” he added. 

Last year, net income reached P2 billion, from the P1.8 billion recorded in 2010. 

The bank, which consistently ranked second among the country’s thrift banking system in the past few years, reported total assets of P117.8 billion at the end of March this year, or an increase of 12 percent over the P104 billion in the same period last year.

 Net interest income expanded by four percent to P1.41 billion, from the P1.36 billion in the same period in 2011. 

Loans portfolio ballooned to P62.7 billion, or a positive growth of 11 percent from the P56.6 billion in the previous year. 

“Auto and mortgage loans recorded double digit growth,” he added. 

Capital expanded by 24 percent to P14.7 billion from the P11.8 billion while its capital adequacy ratio (CAR) marched to 18.02 percent end March from 12.96 percent in 2011. 

Net revenues strengthened to P3.3 billion, up 107 percent from P1.6 billion in the same time last year. 

Deposits rose to P6.6 billion while its checking account/savings account portfolio grew seven percent to P21.6 billion. 

Return on equity (ROE) jumped to 16.3 percent from just 9.9 percent last year. 

Garcia reported that it would be opening five new branches in the next few months while it recently placed on stream six new ones.

Thus at the end of the first quarter of 2012, its total branch network stood at 206 (168 in Luzon, 22 in the Visayas, and another 16 in Mindanao). 

It is likewise operating 515 automated teller machines (ATM) of which 217 are located within the branch premises and 298 offsite units. It also issued 30,000 debit cards, which is co-branded with MasterCard.