Monday, December 11, 2023

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PSBank’s expansion in consumer loan portfolio drives double-digit growth net income for Q12023

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PSBank, the thrift banking arm of Metrobank Group, reported P976.88 million in net income for the first quarter of 2023 or a 10% jump compared to the first quarter of last year. This double-digit increase was propelled by expansion in consumer loan portfolio, improvements in credit quality and prudent expense management.

The Bank’s net interest income rose by 8% year-on-year to P2.95 billion, while net service fees increased by 7% at P464.60 million. Operating expenses were lower by 5% to P2.19 billion as the Bank continued to pursue cost optimization strategies resulting from initiatives on operational efficiency.

Gross loans as of March 31, 2023, increased by 4% to P116.00 billion versus same period last year due to higher consumer demand as the country’s economy opened up. The Bank’s auto loan portfolio grew by 13% year-on-year on the back of higher demand for car financing. Improvements in asset quality were sustained with gross non-performing loans (NPL) ratio improving to 3.2% from 5.0% last year. 

Total assets reached P255.76 billion as of 1Q2023 while deposits amounted to P209.81 billion with low-cost CASA funds totalling P73.29 billion. PSBank’s capitalization remains strong at P37.82 billion, with total capital adequacy and tier 1 ratios standing at 24.6% and 23.8% respectively. Both ratios are well above the regulatory minimum and are among the highest in the Philippine banking industry.

“Even as interest rates and inflation remain high, elevated consumer spending continues to persist which has fuelled significant retail loan demand for the early part of 2023. This works well for PSBank which primarily caters to the needs of the consumer market, specifically for their auto and mortgage loan requirements among others. As we remain cautiously optimistic for any possible short-term volatility attributed to overseas developments, we are equally confident of the organization’s ability to adapt to challenges, pursue business opportunities, and deliver well for our customers and stakeholders,” President Jose Vicente L. Alde said.

In March 2023, the Philippine Public Relations Society awarded PSBank Gold and Silver Anvils for the Bank’s Official Facebook page and online account opening videos. The Anvil awards recognize PR tools and programs that meet the highest PR standards. Forbes’ World’s Best Banks for 2023 has recognized PSBank as one of the top 10 banks in the Philippines, making it the sole thrift banking institution included in the ranking. Published on April 11, the Forbes list was determined based on an online survey of more than 48,000 people in 32 countries. Participants were asked to rate their banks on general satisfaction covering the areas of: customer service, digital services, financial advice, terms & conditions, and trust.

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