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Thursday, March 28, 2024

PSBank increased net profit by 13.8% to P3.03 billion last year

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Philippine Savings Bank, the thrift banking unit of the Metrobank Group, said net income in 2019 rose 13.8 percent to P3.03 billion from P2.66 billion a year ago.

The bank said in a statement Wednesday the full-year performance translated into a return on equity of 10.3 percent and a return on assets of 1.3 percent.

Bank president Jose Vicente Alde said the bank’s strategy on core growth brought positive results despite the volatile environment in 2019.

“Challenges were met head on, reinforced by significant contributions from all the bank’s business units. We had big wins during the year as we were able to focus on operational efficiency and sustained cost discipline across the organization,” Alde said.

He said 2019 was also marked with the introduction of new digital initiatives, such as PaSend and Mobile Check Deposit, which effectively complemented the bank’s “Simple Lang, Maaasahan” mantra.

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“We are looking forward to an exciting 2020, empowered with the same passion and commitment,” he said.

The growth of both core net interest margin and other operating income was supplemented by upsides from operating efficiencies. PSBank’s revenue grew 2.8 percent to P14.60 billion from P14.20 billion in 2018.

But operating expenses, excluding the provision for impairment and credit losses, amounted to P8.91 billion, P256.89 million or 2.8 percent lower than a year ago.

Total loan portfolio rose 4.7 percent to P164.11 billion, driven by the consumer loan business. Despite an increase in risk assets, the NPL ratio improved to 3.6 percent from 4.2 percent in the previous year from continued improvements in credit quality.

Total resources stood at P224.91 billion, down 5.4 percent, while total deposits were also lower by 14 percent to P172.51 billion, as the bank continued to rebalance its funding mix to focus on retail and alternative sources.

PSBank raised P6.3 billion in its two-year maiden peso fixed-rate bond offering on July 1, 2019 with an interest rate of 5.6 percent. Total equity was at P34.46 billion, up by 41.3 percent.

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