PHILIPPINE Savings Bank (PSBank) saw its net income grow to P2.03 billion as of September, supported by sustained loan growth and higher fee-based revenues.
In a disclosure published yesterday, the thrift lender said its bottom line rose 8.1% from the P1.878 billion it made during the comparable nine-month period in 2017, driven by the strong growth of its core businesses.
Net interest income went up by 5.6% year-on-year to reach P8.7 billion. This came on the back of an 8.1% increase in the bank’s loan portfolio now worth P153.9 billion.
The Ty-led lender’s deposit base likewise expanded by 7.2% to hit P197.7 billion, according to the regulatory filing to the Philippine Stock Exchange. As a result, PSBank’s total assets amounted to P231.091 billion.
This led to a return on equity ratio of 11.7%, while return on assets stood at 1.2%.
According to the bank’s quarterly report, PSBank booked P677.089 million net profit from July-September, three percent lower than the P698.368 million it made during the same period last year.
Gross revenues hit P4.863 billion in the third quarter, up by 6.1% from the P4.568 billion raked in a year ago. These gains were offset by higher operating expenses worth P4.114 billion, nearly a tenth higher than the P3.757 billion costs incurred previously.
Still, the bank posted a capital adequacy ratio at 13.8%, which is well above the 10% requirement set by the Bangko Sentral ng Pilipinas.
The bank operates 250 branches and over 580 automated teller machines nationwide.
In a statement, PSBank President Jose Vicente L. Alde attributed the robust credit growth to the lender’s push towards innovation, which they said allowed them to “provide excellent customer service” and “maintain growth despite industry challenges.”
The listed lender said they were first to offer a one-day credit decision for property loans to purchase brand-new homes or condominium units from accredited developers.
PSBank is the thrift lending arm of the Metropolitan Bank & Trust Co. Earlier this month, the bank announced its plan to raise roughly P8 billion via a stock rights offering in the first three months of 2019.
Mr. Alde said the fresh capital will be used to “support the projected growth of the bank,” particularly the consumer loans segment.
This follows the plan to offer P10 billion worth of medium-term notes and long-term negotiable certificates of time deposits worth P5.08 billion issued in August.
PSBank shares closed at P78.35 each yesterday, up P7.05 or 9.89% from P71.30 last Friday. — Melissa Luz T. Lopez
