Manila, Philippines — Philippine Savings Bank (PSBank), a key thrift banking institution under the Metrobank Group, reported a 1 percent increase in net income, totaling P1.21 billion for the first quarter of the year. This growth was largely driven by robust consumer lending, demonstrating resilience amidst evolving economic conditions.
In its latest regulatory filing, PSBank detailed that its core revenues, encompassing net interest income, service fees, and commissions, rose by 9 percent to reach P3.81 billion. Such figures highlight the bank’s strategic focus on expanding its consumer lending portfolio, with gross loans soaring by 19 percent to P152 billion within the January to March timeframe. The increase was primarily fueled by heightened demand in auto, mortgage, and small-to-medium enterprise (SME) lending, although the full quarterly report providing additional insights is yet to be released.
Despite the expansion of its loan book, PSBank has successfully enhanced its asset quality, as evidenced by a reduction in the nonperforming loans (NPL) ratio from 3.4 percent to 2.6 percent compared to the same period last year. This improvement signifies effective risk management practices within the bank’s operations.
Jose Vicente Alde, President of PSBank, expressed optimism about sustaining consumer loan demand, particularly as economic conditions remain stable. He emphasized the bank’s commitment to capitalizing on the evolving financial needs of consumers throughout the year.
As of the end of March, PSBank’s total assets were valued at P222 billion. The bank also recorded total deposits of P170 billion and maintained capital reserves of P45 billion. This financial position is partly bolstered by the monetary policy easing initiated by the Bangko Sentral ng Pilipinas, which typically enhances loan demand through reduced borrowing costs.
Meanwhile, Metrobank, the majority stakeholder with an 88 percent share in PSBank, experienced modest growth in its financial results for the quarter. Metrobank reported a 2.5 percent increase in net income, reaching P12.3 billion, alongside a 2.4 percent rise in net interest income to P29.4 billion. The commercial and consumer segments of Metrobank’s gross loans both experienced approximately 16 percent growth, although provisions for potential loan losses saw a notable increase of 362 percent, amounting to P2.6 billion.