PSBank profit surges 50% to P1.38-B in first half

ABS-CBN News

Posted at Jul 24 2012 10:14 AM | Updated as of Jul 24 2012 09:15 PM

MANILA, Philippines - Philippine Savings Bank (PSBank), a unit of Metrobank, saw its net income surge 50% to P1.38 billion in the first half of the year, as it posted gains in investments and robust growth from its loan portfolio.

In a statement, PSBank said its net revenue grew to P5.9 billion, P2.2 billion higher than the same period last year, on the back of its investments in government securities and 7% jump in interest income on loans.

PSBank's gross loans went up 14% to P67 billion. This was attributed to the growth in consumer loans, with auto and mortgage loans growing by 15% and 14% respectively. Corporate loans, under its large enterprise group, also jumped by 28%.

“We are pleasantly surprised by the strength of loan demand, particularly for mortgage loans. New loan releases for acquisition of houses and condominiums have surged by 50% from last year. If this pace holds up in the second half, our loan portfolio will be 18% to 20% higher than previous year,” PSBank president Pascual M. Garcia III said, in a statement.

However, Garcia noted the margins on these loans are declining due to competitive loan pricing by banks. He said this may temper the growth of profits in the second half of the year.

PSBank set aside provisions of P1.1 billion for the January to June period to further strengthen its balance sheet. Coverage ratio improved to 103% even as its NPL ratio went down to only 3% of its loan portfolio.