PSBank posts net income of P439 M

Philippine Savings Bank’s (PSBank) pre-provision operating profit was up 8 percent to P1.61 billion from a year ago owing to increase in other operating income, reduction in expenses and improved margins arising from reduced cost of funds. As the bank sustained its conservative provisioning strategy with a 39 percent increase versus last year, PSBank posted P439 million net income for the first quarter of 2021.

Gross revenues stayed flat year-on-year at PhP3.77 billion. Net interest income contracted slightly by 3 percent to P3.14 billion. Low-cost CASA deposits grew 12 percent to P67.86 billion, resulting in improvements in asset margins to compensate slower demand for retail loans during the pandemic. The bank continued to reap benefits out of its operational productivity and efficiency initiatives. Operating expenses saw a decline of 6 percent from same period last year. Cost-to-income ratio further improved to 57 percent from 69 percent recorded last quarter.