Low trading gains trim PSBank's 2008 profits

ABS-CBN News

Posted at Feb 19 2009 02:43 PM | Updated as of Feb 19 2009 10:43 PM

Weak trading gains due to the bad investment climate pulled down Philippine Savings Bank's (PSBank) earnings last year by 8 percent from P1 billion to P940 million.

In a statement to the Philippine Stock Exchange, the thrift bank said its trading revenues for 2008 fell by P900 million, resulting in a 24 percent decline in non-interest income to P1.4 billion.

However, PSBank said its net interest income grew 16 percent to P3.7 billion, owing to improvements in its consumer loan portfolio.

Its total loans grew by 16 percent to Php 42.2 billion, with auto lending up 15 percent; mortgage loans, 19 percent; personal loans, 33 percent; while loans to SMEs rose by 7 percent.

The bank’s deposits reached P61.7 billion, a 7 percent rise from P57.9 billion in 2007.

"We are pleased with our financial results considering the decline in our trading revenues last year. With strong earnings from our loans, gains from investments and additional generated fees, PSBank’s net income declined by only 8 percent," said PSBank president Pascual Garcia III.

The bank's total operating expenses, meanwhile, decreased by 7 percent as a result of a one-time tax amnesty payment in 2007, it said.

At end-December, PSBank's total assets stood at P74.6 billion, up 9 percent year-on-year.

Early 2008, it raised P2 billion in tier 1 capital, boosting its capital base by 28 percent to P8.5 billion.

PSBank's capital adequacy ratio remained strong at 17.42 percent, well above the 10 percent minimum required level for all local banks.

PSBank currently has a network of 164 branches and 188 ATMs nationwide.