The Market Monitor Minding the Nation's Business
By Riza Lozada
Metrobank Group thrift bank unit Philippine Savings Bank (PSBank) reported its net income grew by nearly a fifth in the first quarter from a year ago mainly as a result of the growth in its core revenues, composed of net interest income and fee based earnings and the bank’s operational efficiency.
The bank’s bottom-line increased by 18 percent to P511 million in the first quarter. PSBank’s total loan portfolio jumped by 13 percent year-on-year to P134 billion from P118 billion propelled by a strong demand in the consumer lending segment, particularly Auto and Mortgage loans.
The bank’s asset quality remained healthy and in check with net non-performing loans (NPL) ratio steady at 1.1 percent and NPL coverage ratio increasing to 86 percent from 84 percent a year ago.
Deposits, meanwhile, rose by 25 percent annually to P170 billion as of end-March from P137 billion last year with low cost funds growing by 18 percent year-on-year.
The bank’s total resources expanded by 17 percent to P205 billion.
The bank’s Tier 1 and total capital adequacy ratios stood at 11.1 percent and 14 percent, respectively.
Both are above the minimum required level set by the Bangko Sentral ng Pilipinas (BSP).
“We managed to maintain our momentum in pursuing our strategy of expanding our core businesses by making our products available online, making our channels more accessible, and processes more efficient to achieve customer satisfaction and offer the best customer experience to our clients,” PSBank President Vicente Cuna Jr. said.
“This was clearly evident in the first quarter year-on-year growth of our Auto loans, which outpaced the industry’s performance during the same period,” he added.
Cuna noted that PSBank also geared up for business expansion this year through its recent issuance of long-term negotiable certificates of time deposits last January.
PSBank recently received two Silver Anvils in the recently concluded 52nd annual Anvil Awards last March 2017 for the 2015 PSBank Annual Report “Engaging our Customers” and the Bank’s Information Security Awareness Campaign “Be Aware!” The annual Anvil Awards, organized by the Public Relations Society of the Philippines recognizes the best programs and tools in the country that meet the highest PR standards.
PSBank currently has 255 branches and 618 automatic teller machines (ATMs) strategically located nationwide.