Housing and auto loans boost PSBank’s 9-month revenue

PHILIPPINE Savings Bank (PSBank) revenue soared 126% on higher home and auto loans in the January-September period.

In a statement to the local stock exchange, the savings banking arm of the Metrobank Group recorded net income of 2.85 billion pesos for the first nine months of 2022, more than double its income of 1.26 billion pesos. pesos over the same period in 2021.

“With improving levels of consumer spending, we were able to book higher lending volumes specifically for auto and home in the first 9 months of 2022,” said PSBank Chairman Jose. Vicente L. Alde, quoted in the lender’s press release.

“We expect this momentum to continue through the end of the year, although market conditions remain volatile,” Alde said. “We will maintain our robust, reliable and secure digital services channels, dedicated to consistently delivering an exceptional customer experience at every touchpoint.”

The lender said net interest income reached 8.21 billion pesos while income from net service charges, commissions and asset collections rose 52% to 3.11 billion. pesos. Operating expenses remained under control; only increased by 1% year-on-year.

PSBank said it continues to implement productivity and operational efficiency improvements to manage costs, although investments are ongoing to support digital initiatives.

The gross non-performing loan ratio fell significantly by nearly half to 3.6% from 6.6% a year ago.

The bank said that with improving asset quality, it reduced credit provisions to 969 million pesos from 2.77 billion pesos last year.

The net non-performing loan ratio was 1.6% at the end of September 2022, an improvement from 2% last quarter and well below 3.9% in the same period in 2021.

PSBank’s total assets reached 252.96 billion pesos as of September 30, 2022. Deposits stood at 203.19 billion pesos, with low-cost deposits growing 6% year-on-year .

Total capital funds increased by 6% to reach 36.80 billion pesos. The capital adequacy and Tier 1 capital ratios improved further to reach 24.9% and 23.9% respectively, two levels well above the regulatory requirements of the Bangko Sentral ng Pilipinas (BSP).

PSBank said that with the industry’s shift to digital payments, PSBank recently enabled scanning of QRph (“Scan to Pay”) as a payment method for retail stores and merchants via PSBank Mobile.

QRph is the national QR code standard that unifies different QR-based national cashless payment systems into a single standard thus enabling interoperability between participating institutions.