Makati—(PHStocks)—Philippine Savings Bank (PSBank, PSE: PSB), the thrift bank arm of the Metrobank Group (PSE: MBT), reported a full year net income of PhP2.35 billion in 2015 buoyed by the growth of its core businesses. This translated to a return-on-average equity of 12.7%.
“2015 proved to be a challenging year for the Bank, but we continued to gain momentum in our core businesses as our net interest margins and fees from our consumer loans demonstrated double-digit growth,” said PSBank President Vicente R. Cuna Jr. “Our strategy is aimed at expanding our customer base by providing clients the best customer experience at every encounter, at every channel. This strategy has brought us to where we are today and I am confident that the same strategy will solidify our growth in the coming years.”
The bank’s total loan portfolio rose to PhP116 billion propelled by the growth of its auto and mortgage lending businesses, which posted a combined annual increase of 24%. This was complemented by a 15% jump to PhP134 billion in total deposits, with low cost funds climbing by 23%. Deposit-taking initiatives of the Bank focused on new customer acquisition and active cross-selling in line with its commitment to provide customers with products that cater to their banking needs.
Despite the recorded expansion of its loan book, the Bank managed to keep non-performing loans (NPL) in check, with net NPL ratio at 1.2% as of end 2015. PSBank’s capital adequacy ratio–a measure of a bank’s financial strength-stood at 18.0%, well-above the Bangko Sentral ng Pilipinas’ 10.0% minimum requirement. Its Tier 1 ratio was at 12.4%.
By end-2015, PSBank’s total assets expanded by 16% to PhP169 billion. The Bank’s distribution network stood at 248 branches and 614 automated teller machine units nationwide.
PSBank launched several products and services in 2015 geared towards improving customer experience. These include Queue Anywhere, an automated lobby management system that saves clients more time with no forms to fill and the PSBank Mobile Version 2.0 with ATM Lock, a breakthrough innovation that allows clients to lock their ATM cards, providing an additional layer of protection against card-initiated electronic fraud.
Last year, the Bank was conferred the “Pagtugon Award” for excellence in responding and addressing clients’ concerns referred by the BSP and the “2015 SSS Balikat ng Bayan Best Paying Partner” for speed in processing SSS pension payments. Both awards are testaments to PSBank’s commitment of providing the best customer experience, true to its “Simple Lang, Maaasahan” brand promise. The Bank was also included in the list of the Top 10 Strongest Banks in the Country by the Asian Banker in its AB500 list for the fifth consecutive year.