Philippine Savings Bank, the thrift bank unit of Metrobank Group, expects a double-digit growth in loans next year, on strong demand for vehicles and residential units, a top executive said Tuesday.
“We always target a double-digit growth rate and on the loan side we have been hitting it,” PSBank president Vicente Cuna Jr. said at Tower Club in Makati City.
“Auto loans comprise the bulk of our accounts,” Cuna said. “Auto and mortgage loans are our bread and butter.”
PSBank posted a net income of P1.9 billion in the first nine months, up 7.7 percent from P1.73 billion a year earlier. Consumer loan portfolio increased 14.7 percent to P113.7 billion.
Cuna remained conservative in terms of his projection on the growth of net income next year. “On the income side, we eye a single-digit growth rate… Growth drivers will still be loans which is one of our core businesses,” he said.
Cuna said the bank would continue to be opportunistic when it comes to branch expansion to make sure that wider coverage nationwide was maintained.
“We remain opportunistic, but we don’t set a target. If there is an area we feel we need to open a branch in, we will expand. We are looking on both the countryside and cities, but more of the cities than the far-flung areas,” Cuna said.
Cuna said the previous plan of issuing P10 billion worth of long-term negotiable certificates of deposits next year would continue. He said the proceeds would be used to finance operations and as a part of its liability management exercise.
“We have the LTNCD. So far, that is the plan next year. Our approval is P10 billion with a five-year tenor. We are hoping to issue that next year,” Cuna said.
“We don’t know yet the number of tranches. It would depend on market condition but the P3 billion will be issued as a replacement for our maturing tier 2 in February 2017,” Cuna said.