Savings Bank (PSBank), the thrift bank arm of the Metrobank Group, is optimistic that its strong loan business will continue to post double-digit growth next year.
“We always target a double-digit growth rate on the loan side and we have been hitting it,” PSBank President Vicente Cuna Jr. told reporters on Tuesday.
“On the income side, we eye a single-digit growth rate. Growth drivers will still be loans–auto and mortgage, that is our bread and butter,” he added.
The latest PSBank financial report showed that the thrift bank netted P1.9 billion income at end-September this year, 7.7 percent higher than the net earnings recorded in the same period a year ago.
Its consumer loan portfolio rose by 14.7 percent to P13.7 billion, propelled by its auto and mortgage businesses.
In terms of expansion, Cuna said it is open to put up more branches in areas where it feels there is a need to open a branch.
“We are looking [for areas]but more on the cities rather than the far-flung areas,” he added.
As of end-2015, the bank was operating 248 branches. The George Ty-led bank is the second largest thrift bank in the country in terms of assets, net loans, deposits and capital, with P169 billion in total assets in 2015.
In September, PSBank announced that it will be raising P10 billion in fresh funds from the debt market to take advantage of the prevailing low interest rates.
The P10 billion long-term negotiable certificates of time deposits (LTNCTDs) will be issued “through one or more tranches over a period of one year.”
Selling LTNCDs is a way for banks to raise funds, usually in huge amounts. The bank is obliged to pay the face value of the certificate upon maturity, and produce periodic coupon or interest payments during the life of the deposit.
As an investment, LTNCDs are tax-exempt for qualified individuals or institutions if held for at least five years and are insured by the Philippine Deposit Insurance Corp. (PDIC) for up to P500,000.
PSBank said the issuance is still subject to the approval of the Bangko Sentral ng Pilipinas while its final terms, including the offer period and interest rates, will depend on market conditions.