Philippine Savings Bank, the thrift-banking arm of the Metrobank Group, said over the weekend net income increased 2.5 percent in the first half to P1.4 billion from P1.3 billion in the same period last year on the back of consistent growth in consumer loans.
Loans and receivables rose 6.8 percent to P160.8 billion from P150.5 billion a year ago. Auto and mortgage loans continued to be the main contributors for growth in consumer lending, while the increase in SME loans reinforced the growth in commercial lending.
The bank said it managed to keep non-performing loans in check, with the net NPL ratio improving to 2.8 percent in the second quarter from 3.1 percent in the first quarter.
PSBank president Jose Vicente Alde attributed these successes to strategic initiatives that were focused on excellent customer experience and digitalization.
“The sustainability of our revenues coming from our consumer loans, supported by a bank-wide mindset of increasing productivity via process streamlining and automation, truly helped us generate strong financial results for the first half of 2019. Our customer-centric and technology-driven approach is a blueprint that will help us prepare for the future,” Alde said.
Total interest income climbed 8.6 percent to P8.6 billion from P8 billion year-on-year while other operating income which includes net service fees and commissions registered a 16.2-percent growth to P1.7 billion from P1.4 billion.
Total deposits went down to P179.4 billion in the first half from P200.1 billion in the same period last year, as the bank re-balanced its funding profile to emphasize more on retail deposits and alternative funding sources.
Low-cost deposits went up by 4.5 percent year-on-year to P55.9 billion from P53.5 billion.
PSBank raised P6.3 billion in peso fixed-rate bond offering on July 1, 2019. It said the proceeds would give PSBank an opportunity to access long-term funding to expand its consumer banking business.
The bank’s total capital adequacy ratio was at 18.6 percent while its common equity tier 1 ratio reached 16.1 percent, both above the minimum level set by the Bangko Sentral ng Pilipinas.
“With all these favorable results we’ve been able to accomplish in the first half, we are maintaining a positive outlook for the rest of the year and we look forward to continue building PSBank as an institution of trust, confidence and resiliency”•one committed bank dedicated to improving the lives of our customers,” Alde said.