Philippine Savings Bank (PSBank), the thrift bank division of Metrobank, reported a double-digit increase in its net income for the first half of this year.
According to PSBank, its net income between January to June this year has already reached P2.17 billion, an 18% increase compared to the P1.84 billion income it reported for the same period last year.
The bank credited the release of consumer loans, an improvement in credit quality, and gains from productivity and efficiency efforts with their strong first-semester performance.
The bank was able to profit from the economy’s ongoing expansion and the continuous increase in consumer demand during the first six months thanks to its reevaluated strategy and emphasis on improving client experience.
“Despite foreign difficulties, we are optimistic that this can continue for the remainder of the year,” said Jose Vicente L. Alde, president of PSBank, referring to the bank’s strong performance in the first half of this year.
Net interest income from loans and investments, including fees, made up core revenues, which increased by 8% to P6.8 billion from Php6.3 billion a year before.
On the other hand, as a result of the bank’s ongoing cost optimization measures, operating expenses decreased by 2% where they had been rather stable in the past.
As of June 2023, PSBank’s overall loan portfolio increased by 9% to P120 billion. Due to the consistent increase in demand for vehicle financing, there was a 21 percent increase in auto loans as the main contributor to this.
The thrift bank division of the Metrobank Group said that despite the portfolio growth, its gross non-performing loans decreased by 11%, resulting in a non-performing loan ratio of 3.5 percent, which is better than pre-pandemic levels.
By the middle of 2023, the bank’s entire deposits had grown to P187 billion from its total resources of P235 billion. Capital increased by 7% to P39 billion, with the common equity tier 1 ratio at 23.7 percent and the total capital adequacy ratio at 24.6 percent.
Both ratios, according to PSBank, are among the highest in the sector and above the minimum level established by the Bangko Sentral ng Pilipinas (BSP).
