PSBank, the thrift banking arm of the Metrobank Group, said Monday net income in the first half climbed 18 percent to P2.17 billion from P1.84 billion a year ago.
PSBank president Jose Vicente Alde said it benefitted from the continued expansion of the economy and the sustained growth in consumer demand through its recalibrated strategies and focus on enhanced customer experience.
“We are hopeful, despite the external headwinds, that this can be sustained for the rest of the year,” Alde said.
The first-half performance translated into a higher return on equity of 11.4 percent from 10.4 percent a year earlier.
The continuing uptrend in the bank’s consumer loan releases, improvement in credit quality and gains realized from productivity and efficiency initiatives further strengthened the bank’s platform for sustainable earnings in the post-pandemic era.
Core revenues, composed of net interest income from loans and investments including fees, grew by 8 percent to P6.8 billion from P6.3 billion a year ago. Operating expenses remained subdued and was reduced by 2 percent as a result of ongoing cost optimization projects.
Total loan portfolio expanded by 9 percent to P120 billion as of June 2023, driven by the 21-percent increase in auto loans owing to the steady influx of demand for vehicle financing.
Despite the portfolio increase, gross non-performing loans declined by 11 percent resulting in a NPL ratio of 3.5 percent, better than pre-pandemic levels.
Total resources stood at P235 billion while total deposits reached P187 billion by mid-2023. Capital improved by 7 percent to P39 billion with total capital adequacy ratio at 24.6 percent and common equity tier 1 ratio at 23.7 percent, both above the minimum level set by the Bangko Sentral ng Pilipinas and among the highest in the industry.
PSBank has a nationwide network of 250 branches and 557 in-branch and offsite automated teller machines.