Philippine Savings Bank, the thrift bank unit of the Metrobank Group, is expected to proceed soon with its planned issuance of P15 billion worth of long-term negotiable certificates of time deposits after securing the approval of the Bangko Sentral ng Pilipinas.
“Philippine Savings Bank recently got approval from the BSP for its long-term negotiable certificates of time deposit [LTNCTD] issuance of up to P15 billion,” the bank disclosed to the stock exchange on Tuesday.
The bank’s board on May 21 approved the issuance of LTNCDs through two or more tranches over a period of one year. The issuance will give PSBank an opportunity to gain access to long-term funding as the bank further expands its consumer banking business.
LTNCDs are bank products with long tenors which are offered to investors looking for a higher interest rate compared with regular savings accounts or shorter-term deposits. They are tax-exempt for qualified individuals if held for at least five years.
LTNCDs are insured by Philippine Deposit Insurance Corp. up to a maximum coverage per depositor, currently at P500,000.
PSBank earlier said the final terms, including offering period and interest rates, would depend on market conditions.
PSBank’s net income in the first quarter jumped 25 percent to P641.1 million from P511.1 million a year ago on strong revenues composed of net interest margin and other operating income.
PSBank posted a double-digit growth of 15 percent in total operating income year-on-year to P3.7 billion from P3.2 billion.
Total loan portfolio rose 11.7 percent to P149.2 billion, driven by the bank’s consumer loan business. Total resources expanded to P224.8 billion, up 9.4 percent year-on-year while deposits rose 9.2 percent to P186 billion.
Total capital adequacy ratio—a measure of financial strength—stood at 13.7 percent while Common Equity Tier 1 ratio was at 11 percent, both well-above the Bangko Sentral ng Pilipinas’ minimum required level.
PSBank currently has 250 branches and over 600 automated teller machines strategically located nationwide.
