Philippine Savings Bank, the thrift banking arm of the Metrobank Group, said Wednesday it expects a double-digit growth in loans next year, driven by an expanding client base and an effective marketing strategy.
PSBank president Vicente Cuna Jr. did not give the specific loan growth guidance in 2016, as the bank is a listed company.
“We are targeting a double-digit growth for loans next year. To achieve that, we have several initiatives. It’s through the expansion of our customer base and also through increasing our selling capability,” Cuna said in Makati City Wednesday.
Cuna said PSBank also planned to put up additional branches in 2016 to widen its nationwide coverage.
“We have 248 branches now. We are looking at additional 10 to 15 branches next year. These will be located both in Manila and the provinces,” Cuna said.
PSBank’s net income declined 9 percent in the first nine months to P1.73 billion from P1.9 billion in the same period last year. The bank’s net income in 2014, however, included one-time gains from asset sales in relation to Basel 3 preparation.
The three-quarter numbers resulted in a return on equity of 12.5 percent. Core income increased 18.7 percent year-on-year.
Net margins and fee income grew 9.1 percent to P7.1 billion, respectively. Interest income from loans and receivables jumped 12.2 percent to P7.3 billion, on the back of higher consumer loans.
The bank’s gross loan portfolio went up by 17.6 percent to P111.8 billion, primarily led by the robust growth in auto and mortgage loans.
Consumer loan bookings registered an improvement of 29 percent year-on-year. PSBank kept its non-performing loans ratio at 1.1 percent. As of end September 2015, NPL coverage stood at 84 percent.
Total deposits reached P127.1 billion, up 3.6 percent from last year, with low-cost funds increasing by 19 percent. Deposit-taking initiatives continued to focus on new customer acquisition and active cross-selling anchored on a stronger commitment to provide the best customer experience to clients.