PHILIPPINE SAVINGS Bank (PSBank) saw its net income rise by 18% year on year in the first nine months, mainly driven by growth in its auto loan portfolio.

The listed thrift banking arm of Metropolitan Bank & Trust Co. booked a net profit of P3.37 billion in the period, it said in a disclosure to the local bourse on Monday.

This translated to a return on equity of 11.7%.

“The results were driven by the continuous expansion of its core businesses, primarily from growth in the auto loan portfolio, complemented by effective expense management,” PSBank noted.

“Despite the unpredictable headwinds, we remain focused on sustaining our strong results while we continue to innovate on products, services and processes consistent with our commitment to deliver effortless banking to our customers,” PSBank President Jose Vicente L. Alde said.

The bank’s financial statement was unavailable as of press time.

PSBank’s net interest income stood at P8.82 billion in the period, while income from fees and commissions went up to P1.33 billion.

“Operating expenses were reduced by 1% as the bank was steadfast in its productivity and operational efficiency initiatives,” it noted.

Its loan book expanded by 12% year on year to P123 billion. Auto loans climbed by 24% amid an increase in vehicle sales.

The bank’s gross non-performing loan (NPL) ratio stood at 3.4%, which it noted was “better than pre-pandemic levels.”

On the funding side, deposits were at P188 billion in the first nine months.

PSBank’s assets stood at P236 billion at end-September and total capital was at P40 billion.

Its capital adequacy ratio and common equity Tier 1 ratio stood at 24.6% and 23.7%, respectively, well above the minimum level required by the regulator.

PSBank’s shares went up by P1 or 1.82% to end at P56 apiece on Monday. — AMCS