PHILIPPINE Savings Bank (PSBank), the thrift-bank of the Metrobank Group, posted a lower net income in 2014 compared with the previous year but said its core margins managed to post double-digit growth for the year.
Net income last year amounted to P2.3 billion, 21 percent lower than the profit it posted in 2013, the bank said in a statement.
“Unlike in 2014, the Bank’s 2013 net income had one-off extraordinary income from the sale of investment portfolio which took advantage of market opportunities at that time,” the statement said.
But its core margins grew by 15 percent year-on-year owing largely to the continued aggressive growth in its consumer loan portfolio, mostly coming from auto and mortgage loans.
“Our continuing focus on core asset expansion is giving us good results. The increase in our net interest income and fee-based revenues are very solid indicators of sustainability and quality growth,” PSBank President Vicente Cuna Jr. said.
Cuna said the bank’s retail lending business led by auto and mortgage loans, supported by an increasing deposit customer base, provided a good foundation for PSBank’s core-growth in the coming years.
The bank’s 2014 capital base stood at P17.7 billion with a total capital adequacy ratio and Tier 1 ratio of 19.6 percent and 13.3 percent, respectively.
Return on capital was at 13.6 percent, while asset quality indicators improved with net non-performing loan (NPL) ratio at 0.5 percent and NPL coverage of 98.2 percent.
The bank said its improvement in delinquency is attributable to a combination of enhancements in the bank’s lending processes, collections and credit risk management tools.
PSBank’s total resources further expanded to close strong by end-2014 at P145.6 billion. To date, the bank has 245 branches and 595 automated teller machines nationwide.