PSBank net income rises on improving consumer business

REPORT FROM BUSINESSWORLD Philippine Savings Bank (PSBank) posted a 14% increase in net income for the first half to P608 million from P533 million a year earlier. In a disclosure to the stocks exchange, the Ty-owned savings bank traced the growth to its improving consumer loan business. The bank said its auto, mortgage and personal loans reached P2 billion in the first half. Investment securities worth P590 million had also helped, it said. PSBank said its total loan portfolio reached P33.73 billion for the first half, up by 12% from the same period last year. Noninterest income grew by 11% to P1.1 billion as favorable market opportunities pushed the bank’s trading income higher. Total assets as of end-June stood at P64 billion, 12% higher than P57 billion a year earlier, while total deposits went up by 14% to P53 billion from P47 billion. PSBank’s capital stood at P6.2 billion, while its capital adequacy ratio — a measure of financial health — was at 17.7%, significantly higher than industry average. "Our growth actually exceeded our targets," PSBank President Pascual M. Garcia III said in a phone interview. He said the bank was expecting growth for the rest of the year as it enhances its financial products and expands its branch network. The bank opened 12 additional branches in the first half, bringing its branch network to 162. Mr. Garcia said the bank would open another later this year. The bank has also improved its technological infrastructure by introducing remote banking. "We improved our technological infrastructure, which enables us to provide faster and efficient service because of automation," he said. Remote Banking is PSBank’s own brand of electronic banking where customers can view account information, pay bills, transfer funds and do other transactions via the Internet. — G.S. dela Peña/BusinessWorld