Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank Group, said it suffered a 17-percent drop in net income during the first quarter of 2015 compared to a year earlier.
In a statement on Friday, PSBank reported a net income of P387.1 million in the first three months of the year, lower than the P469 million posted in the same period last year.
The bank did not cite specific reasons for the decline, but instead focused on the gains in its core business. It said its net margins and fee-based income improved, thus increasing revenues from core business to P130.3 million.
However, it noted that extraordinary gains booked during the same period in 2014 amounting to P148 million were not available for the bank this year.
Total loan portfolio posted a double-digit growth of 15 percent year-on-year, ending the first quarter at P103.1 billion from P89.4 billion owing to a significant increase in Auto and Mortgage loan bookings.
On the funding side, PSBank was able to grow its low cost deposit base. Total Current Account Savings Account (CASA) increased by 17 percent against its level in the same period last year.
The bank also remains prudent amid the increasing loan portfolio with a net non-performing loans ratio of 1.0 percent. Tier 1 and total capital adequacy ratios continue to show strength at 13.1 percent and 19.3 percent, respectively. These ratios are above the minimum set by the central bank.
As of the first quarter, the bank’s distribution network stands at 246 branches and 597 ATMs nationwide.
PSBank President Vicente Cuna Jr. said 2015 is proving to be a challenging year given increasing competition in retail banking.
“Nevertheless, we will continue to focus on strengthening our core business as we expand our customer base supported by differentiated customer experience, new product offerings, and targeted sales campaigns. We shall likewise endeavor to manage our operating costs at stable levels even as we support new business investments,” he said.