Makati—(PHStocks)— PSBank reports Php2.0 Billion record net income in first quarter, 273% higher compared to the same period last year. Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank Group, reached a record net income of Php2.0 billion in the first quarter of 2013 from Php546 million the previous year due to the gain s from its investment portfolio and an outstanding growth in its loan portfolio.
Net interest income reached Php1.5 billion with income from loans growing by 16% to Php1.9 billion. Total loans grew 23% to Php77.0 billion as strong consumer confidence and sustained economic growth continue to buoy demand for loans. Auto Loans rose 28% compared to the previous year, while Mortgage Loans expanded by 21%. The Bank’s combined SME and large corporate loans likewise went up by 25%. In spite of the increase in loans, net NPL ratio declined to 0.4%. It also set aside Php609 million of provisions for the first quarter of the year, thus increasing loan coverage to 102%.
The prevailing lower interest rate environment has allowed the Bank to recognize opportunities from its investments in government securities. PSBank also posted a 13% rise in its income from service charges and commissions.
On the other hand, improvements in operating efficiency brought about by automation kept operating expenses flat at Php1.8 billion.
The Bank’s equity was likewise higher by 27% at Php18.7 billion. This translates to higher capital adequacy ratio of 18.6% which is well above the 10% minimum required level for local banks.
PSBank distribution network now includes 222 branches and 537 onsite and offsite ATMs all over the country. “We are seeing traction in our strategy of improving sales coverage and operating efficiency as evidenced by the continued increase in market share for our key loan products, auto and mortgage. Given this loan increase, we are confident to exceed the original income target of the bank for the year,”