PSBank H1 net income rises by almost a quarter

Philippine Savings Bank (PSBank) posted a 24 percent year-on-year increase in net income during the first semester to P623 million propped up by strong growth from its core lending business and government securities investments, bank president Pascual M. Garcia III said. In a disclosure, Garcia said net interest income grew by 27 percent to P2.25 billion while non-interest income went up by 33 percent to P826 million. “We are very pleased with the good performance of PSBank in the first six months of 2009 despite challenges brought about by the global economic downturn. We will continue to build on this momentum as we aim for our P1.1 billion net income target by year-end," he said. Hiking its loan loss provisions during the six-month period, PSBank set aside 125.83 percent more than P240 million at P542 million to improve its provisioning coverage to 69 percent from 50 percent previously. The thrift bank arm of the Metrobank Group continued to invest in technology, new branches and off-site ATMs, having a network 165 branches and 248 ATMs nationwide as of end-June. “Our goal is to open 10 more branches this year, with five scheduled to be opened until end-August. In 2009, we aim to open a total of 100 offsite ATMs in strategic locations to better serve our clients. Of these ATMs, 66 were put up in the first semester," Garcia said. PSBank managed to raise its loan portfolio by 17 percent amid expectations of slowdown in consumer loans. In fact, personal loans rose 16 percent on a year-on-year basis, while mortgage and auto loans grew by 13 percent and 11 percent, respectively. Deposits improved 22 percent to P68 billion in June with peso deposits and dollar deposits increasing by 21 percent and 25 percent, respectively. “Customers are now more prudent with their money and opt to build on their savings rather than spend it on unnecessary purchases. This protects them from uncertainties brought about by the global crisis," Garcia said. PSBank’s total assets reached P83.6 billion as of June while capital was recorded at P9.8 Billion. Its capital adequacy ratio, or the ability to shoulder risks, was at 14.95 percent while its return on average equity hit 13.63 percent. PSBank shares closed unchanged at P40. -Ruby Anne M. Rubio, GMANews.TV