PSBank net income in 2017 up by 8.3%

February 26, 2018 - 3:11 PM
File Photo of the PSBank building. HANDOUT PHOTO

MANILA – Philippine Savings Bank (PSBank), the thrift banking arm of Metrobank Group, reported a net income of PhP2.7 billion in 2017, 8.3% higher than the PhP2.5 billion recorded in the previous year.

Continued strong performance of core revenues composed of net interest income and fee-based income remains to be the main drivers of the increase in profits. Net interest income grew by 14.6%, while fee based income increased by 19.9%, according to a statement issued Monday by the bank.

Loan portfolio grew by 13.3% to PhP146.3 billion from PhP129.2 billion in 2016. Auto and mortgage loans continue to be the main contributors for growth in consumer lending, while increase in SME loans reinforced growth in commercial lending. Despite the expansion of its loan portfolio, the Bank managed to keep non-performing loans (NPL) in check, with net NPL ratio at 1.2% as of end-2017.

Deposits increased by 19.3% to PhP188.9 billion from PhP158.4 billion in 2016, with low cost funds growing by 16.3%.

PSBank ended 2017 with PhP223.3 billion in total assets up by 13.4%. Total equity is at PhP22.4 billion, up by 11.8%. The Bank’s Tier 1 and total capital adequacy ratios stood at 11.1 % and 13.9%, respectively. Both are above the minimum requirement set by the Bangko Sentral ng Pilipinas.

Return on equity is at 12.5%. Earnings per share increased to PhP11.05 from PhP10.20.

PSBank, meanwhile, touted its leadership in banking innovations with the launching of its Cardless Withdrawal and its redesigned mobile application packed with new functionalities such as PayMe – a first of its kind in the banking industry.

The PSBank Cardless Withdrawal allows clients to conveniently and securely withdraw cash from any PSBank ATM without using their ATM Card, giving them flexibility as they can now leave their ATM cards at home. It is also equipped with a multi-factor authentication process, assuring clients of their accounts’ security.

PSBank PayMe allows clients to request and collect funds from other PSBank Mobile App users real-time, making collecting payments quick and easy.

“We are pleased to see that the results of our efforts in digitization and customer service are becoming evident with the year in and year out strong performance of our core business, making our growth stable and sustainable” PSBank President Vicente R. Cuna, Jr. said.

PSBank received an issuer rating of PRS Aaa (Corp.) from the Philippine Ratings Services Corporation (PhilRatings). An issuer rating is an opinion on the general and overall creditworthiness of the issuer, evaluating its ability to meet all its financial obligations within a time horizon of one year.

PSBank currently has a combined distribution network of 250 branches and over 600 onsite and offsite ATMs strategically located nationwide.