Strong consumer demand for loans and a significant improvement in credit quality bolstered earnings in the first half of Philippine Savings Bank, the thrift banking arm of the Metrobank Group.
Listed PSBank saw first-half income rise 18 percent to P2.56 billion, which translated to an annualized return on equity of 12.5 percent, reflecting the bank’s solid financial footing.
Net interest income in the first half saw a modest rise of 4 percent year-on-year, totaling P 6.08 billion. Total operating income, which includes service fees, commissions, and other income, amounted to P7.74 billion. Operating expenses also grew by 5 percent, reaching P4.62 billion.
PSBank’s total gross loan portfolio fell 10 percent year-on-year to P132 billion, largely fueled by an 18 percent increase in auto loans, aligning with the upward trend in vehicle sales across the country. The bank’s steady loan portfolio expansion was complemented by an improvement in asset quality, with gross non-performing loans ratio declining to 2.9 percent from 3.5 percent a year ago.
The bank’s total assets stood at P220 billion, with total deposits and capital reaching P170 billion and P42 billion, respectively. PSBank’s total capital adequacy ratio of 24.3 percent and common equity tier 1 ratio of 23.2 percent, both well above the regulatory minimum set by the Bangko Sentral ng Pilipinas.
“By prioritizing customer-centricity and a proactive sales approach in our strategy, the Bank has seen consistent growth in its core business. Apart from providing top-notch quality service to our patrons, we ensure that the products we offer can pave the way for Filipinos to achieve their financial goals and aspirations. We are hopeful that the positive performance in the first half will be sustained for the rest of the year,” PSBank president Jose Vicente Alde said in a statement.
PSBank has recently updated its mobile app for a smoother and more intuitive interface, allowing users to customize their home screen to view all or a single account, save and share transaction receipts, and access detailed loan account information.With its strong financial performance and ongoing technological enhancements, PSBank is well-positioned to continue its growth trajectory. The bank’s strategic focus on customer satisfaction and operational efficiency remains central to its long-term success and its role in supporting the financial aspirations of Filipinos.
