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Friday, March 29, 2024

PSBank plans to sell P10 billion worth of notes for expansion

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Philippine Savings Bank, the thrift banking arm of the Metrobank Group, said it plans to raise P10 billion from the issuance of medium-term fixed or floating rate notes to finance its growing consumer banking business.

PSBank said in a disclosure to the stock exchange Friday its board of directors passed a resolution approving the bank’s request to issue the notes.

“The final terms, including the offering period and interest rate, will depend on market conditions,” said PSBank president Jose Vicente Alde.

“The MFN issuance will give PSBank an opportunity to access medium-term and stable funding as the bank further expands its consumer banking business,” Alde said.

The bank’s board of directors approved in July the issuance of long-term negotiable certificates of time deposits of up to P15 billion, which is also aimed at expanding its consumer banking business.

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LTNCTDs are bank products with long tenors which are offered to investors looking for a higher interest rate compared to regular savings accounts or shorter-term deposits. They are tax-exempt for qualified individuals if held for at least five years.

They are insured by the Philippine Deposit Insurance Corp. up to a maximum coverage per depositor, currently at P500,000. The final terms, including offering period and interest rates, will depend on market conditions.

PSBank remains among the top players in the thrift banking industry in terms of assets, loans and deposits.

PSBank posted a 14.7-percent increase in net income in the first half to P1.35 billion from P1.18 billion a year ago, fueled by the sustained strength of its core businesses.

Net interest income improved 8.8 percent to P5.85 billion from P5.38 billion a year earlier.

Loan portfolio in the first half showed a double-digit growth of 10.7 percent to P151.62 billion from P137.01 billion in 2017.

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