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Friday, March 29, 2024

PSBank receives high credit grade from PhilRatings

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Philippine Savings Bank, the thrift banking arm of the Metrobank Group, received an issuer rating of PRS Aaa (corp.) from Philippine Rating Services Corp.  (PhilRatings), the bank disclosed to the stock exchange Monday.

PSBank is the country’s second largest thrift bank, with assets of P237.7 billion as of end-2018. The bank ended 2018 with 250 branches and 575 ATMs. 

An issuer rating is an opinion on the general and overall creditworthiness of the issuer, evaluating its ability to meet all its financial obligations within a time horizon of one year. The focus is on financial strength and stability under normal and stressed conditions to be able to meet existing and prospective financial obligations. 

A company rated PRS Aaa (corp.) has a very strong capacity to meet its financial commitments relative to that of other Philippine corporates. A PRS Aaa (corp.) is the highest corporate credit rating assigned on the PRS scale. 

“The rating took into consideration PSBank’s solid market position; its well-defined and forward-looking strategy; highly-experienced management; and continued growth in core interest income, attributable to loan portfolio expansion,” PSBank quoted PhilRatings as saying on the reason for the rating.

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The issuer credit rating assigned by PhilRatings is based on available information and projections at the time that the rating review was performed.

“PhilRatings shall continuously monitor developments relating to PSBank and may change the rating at any time, should circumstances warrant a change,” it said.

PSBank is considered a significant player in the domestic consumer market, with about 91.4 percent of its loan portfolio accounted by consumer loans as of end-2018. Compound annual growth rate of the bank’s consumer loan portfolio from 2014 to 2018 was at 14.2 percent.

PSBank’s auto and mortgage loans recorded CAGRs of 18 percent and 9.6 percent, respectively. Despite the significant decline in automotive sales resulting from the implementation of the Tax Reform for Acceleration and Inclusion Act, PSBank managed to keep its market share of about 17 percent.

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