By The Financial District
Mar 6, 20211 min
The Philippine Savings Bank (PSBank) has set aside a hefty amount of P6.4 billion in the loan-loss provision, three times that of the previous year, resulting in a net income of P1.108 billion for 2020.
PSBank President Jose Vicente Alde said the bank "took a conservative stance on credit provisioning in anticipation of risks associated with the pandemic."
Also, Alde said the bank is strengthening its digital platforms with the exponential rise in digital banking services.
The bank's gross revenues were 13% higher at Php 16.57 billion with net interest income improving by 21% to Php 13.75 billion, owing to significant growth in low-cost CASA deposits and the decline in interest of term deposits.
CASA deposits grew 16% to Php 67.25 billion from Php 58.18 billion.
In line with initiatives to improve operating efficiencies, operating expenses were kept in check and increased by only 2%. PSBank’s capital position remained strong at Php 34.51 billion. Total Capital Adequacy Ratio and Common Equity Tier 1 Ratio (CET1) further improved year-on-year to 19.4% and 18.1% respectively.