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PSBank grows full-year profit by 12%

22-Feb-12, 7:22 PM | Joseph Villanueva, InterAksyon.com

InterAksyon.com
The online news portal of TV5

MANILA, Philippines – The thrift arm of the Metrobank group on Wednesday said it ended 2011 with a 12 percent increase in its profit, as its auto loans business grew despite a supply shock delivered by the flooding in Thailand.

Ramon Dimayuga, chief financial officer of Philippine Savings Bank (PSBank), said the lender earned P2 billion last year, its highest net income on record.

Dimayuga said the bank’s core interest margin rose 14 percent from the year before.

PSBank’s assets grew 15 percent to P120.3 billion from the previous year’s P104.1 billion, with gross loans rising nine percent to P66.1 billion.

Its auto loan business grew by 13 percent even though the vehicle industry's full-year sales contracted as a result of the flooding in Thailand, which is a key source of cars and parts in Southeast Asia. PSBank's home lending business also increased nine percent.

“The higher loan portfolio was posted in spite of the 3.2 percent decline in industry passenger car sales and the interest rate competition on mortgage loans,” Dimayuga said.

“Investments in government securities likewise rose by 18 percent to P31.1 billion due to the increase in the funding base of the bank,” he said.

On the liabilities side, PSBank’s deposits increased 16 percent, following an additional 20 new bank branches that widened its network to 200 nationwide.

The lender added 126 ATMs, 105 of which are offsite in line with PSBank’s efforts to increase customer touch points. These include 43 machines located at LRT stations and 15 along the MRT line.

PSBank’s non-performing loan ratio fell to 3.1 percent, lower than the thrift industry average of 6.2 percent.

Its capital adequacy ratio stood at 13.9 percent at end-2011, above the regulatory minimum of 10 percent.