PHILIPPINE SAVINGS Bank (PSBank) bagged the top corporate rating from a Manila-based debt watcher, with its solid loan growth and a stable funding profile supporting the bank’s creditworthiness.

The listed lender announced yesterday that it secured a PRS Aaa (corp.) rating from the Philippine Rating Services Corp. (PhilRatings), or the highest corporate credit rating on the firm’s scale. This means that the bank has a “very strong capacity” to fulfill its financial obligations within a one-year horizon.

“The rating takes into consideration PSBank’s solid market position, underpinned by its well-defined growth strategy; the continued growth in the bank’s core interest income, attributable to loan portfolio expansion; expectations that the bank’s funding profile will continue to improve, supported by increased levels of current and savings deposits; and the favorable outlook for domestic consumer credit,” the bank said in a disclosure.

PhilRatings is the first domestic credit rating agency accredited by the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas.

In the statement, PhilRatings said PSBank is a “significant” player in the consumer lending market, propped up by an upbeat car loan portfolio which is expected to keep growing for the rest of the year.

Loans granted by the thrift bank reached P137.01 billion during the first semester, up by 12.9% from the P121.35 billion posted a year ago as auto loans climbed by a fifth.

Upgrades geared towards improved customer experience and digital products and financial services are also seen to broaden the bank’s reach to capture more retail clients and small and medium-scale firms, the credit rater said.

“The overall outlook for consumer lending is positive, driven by auto lending, card lending, and mortgages/housing,” PhilRatings said in the statement.

“Factors which will positively contribute to the continued growth of consumer lending include the Philippines’ sustained economic growth, its stable banking system, and a demographic profile which suggests a strong retail market over the long term.”

The Philippine economy expanded by 6.4% during the first semester, with the International Monetary Fund expecting a 6.6% growth for the entire year.

Alongside robust loan growth, PSBank is seen to enjoy a “stable” funding base as it takes in more deposits led by higher amounts held in current and savings accounts, which are deemed “more stable” compared to time deposits.

PSBank reported a P1.18-billion net income from January to June up by 2% from the P1.16 billion booked during the same period in 2016. The bank has said that it is eyeing to book a double-digit growth in its bottom line for the entire year. — Melissa Luz T. Lopez

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