PHILIPPINE Savings Bank (PSBank) recorded a higher net profit in 2023 as it saw double-digit growth in loans and higher investment revenues, it said on Monday.
The thrift banking arm of the Metrobank Group booked a net income of P4.53 billion last year, 23% higher than the P3.68 billion in 2022, it said in a disclosure to the stock exchange.
This translated to a return on equity of 11.7%, the bank said.
“This significant milestone was a result of teamwork and steadfast commitment of PSBankers in delivering effortless banking to our clients and stakeholders,” President Jose Vicente L. Alde said in a statement.
“We want to leverage on this momentum to expand our coverage, provide diversified offerings, and further invest in technology to level up customer experience in the succeeding years,” he said.
The bank’s financial statement was not available as of press time.
PSBank said its financial performance in 2023 was mainly driven by the double-digit growth in loans, higher investment revenues, and muted costs amid operational efficiencies.
Its net interest income rose by 7% year on year to P11.83 billion in 2023, while operating expenses declined by 1% amid its cost optimization efforts.
The bank’s gross loan portfolio grew by 12% to P125 billion at end-2023 from the P112 billion a year prior. Auto loans expanded by 24% year on year amid higher demand, PSBank said.
Despite the growth in its loan book, PSBank’s gross nonperforming loan ratio improved to 3.3%in 2023 from 3.5% in 2022.
On the funding side, total deposits with the bank were at P190 billion last year.
PSBank’s assets stood at P238 billion at end-2023, while its capital reached P40 billion.
Its capital adequacy ratio was at 24.5% in 2023 and its common equity Tier 1 ratio stood at 23.6%, above the minimum levels set by the central bank.
PSBank’s shares dropped by P1 or 1.82% to close at P54 each on Monday. — Keisha B. Ta-asan
