PSBank Posts 18% Hike In Earnings To ₱2.56-B

Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, grew its net income by 18% to ₱2.56 billion in the first half of the year, up from ₱2.17 billion reported last year, resulting in an annualized return on equity of 12.5%.

PSBank's growth was propelled by an 18% surge in auto loans as vehicle sales in the country continued to trend upward. I Photo: PSBank

The strong demand for consumer loans and improvement in credit quality contributed to the bank’s solid financial performance.

Net interest income rose by 4% year-on-year to ₱6.08 billion, while total operating income, including service fees, commissions, and other income, ended the half at ₱7.74 billion. Operating expenses increased by 5% to ₱4.62 billion.

The bank’s total gross loan portfolio registered a 10% growth, reaching ₱132 billion by the end of June 2024, compared to last year's ₱120 billion.

This growth was propelled by an 18% surge in auto loans as vehicle sales in the country continued to trend upward. With steady loan portfolio expansion, asset quality further improved as the gross non-performing loans ratio declined to 2.9% as of 1H2024 from 3.5% a year ago.

Total assets closed at ₱220 billion, while total deposits and capital reached ₱170 billion and ₱42 billion, respectively.

The bank's total capital adequacy ratio of 24.3% and common equity tier 1 ratio of 23.2% are above the regulatory minimum set by the Bangko Sentral ng Pilipinas and remain among the highest in the industry.