PSBank H1 net income tumbles 62%

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Philippine Savings Bank’s (PSBank) net income for the first half plunged 62 percent from a year earlier, although its net interest income rose 21 percent in the period

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In a statement on Wednesday, the thrift bank arm of the Metrobank Group reported a P1.1-billion net income for the first six months of the year, down from a P2.9-billion net income posted for the same period in 2013.

Net interest income grew to P3.8 billion from P3.2 billion previously.

In terms of loan portfolio, the bank recorded 14 percent growth to P92.5 billion as of end-June from P81.0 billion previously. Total assets surged 20 percent to P141.0 billion.

Deposits rose 22 percent to P113.1 billion, while low-cost deposits were up 25 percent.

“PSBank issued P3.0 billion Basel III-compliant Unsecured Subordinated Tier 2 notes last May 23. The Tier 2 Notes, which were rated PRS Aaa by Philippine Ratings Corp. [Philratings], were met with overwhelming demand and were more than 3X oversubscribed,” the bank said in a statement.

With this issue, PSBank’s total capital adequacy ratio improved to 19 percent, or well above the 10 percent minimum required for local banks.

“After our recent capital-raising activity, PSBank is well-positioned to meet the market’s aggressive demand for consumer loans. We, however, remain vigilant in our credit processes to ensure we maintain the high quality of our loan portfolio,” PSBank President Vicente Cuna Jr. said.

Furthermore, the bank said its bad loans or net non-performing loans ratio was kept low at 0.3 percent despite the increase in loans.

“The Bank has remained prudent in its provisioning and has kept NPL coverage at 107 percent,” it said.

Meanwhile, its distribution network now includes 226 branches and 569 onsite and offsite ATMs all over the country, it said.

It also recently launched its mobile banking facility, which allows customers to access products and services using their mobile phones and tablets.

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