PSBank H1 ’14 net income down to P1.1B

MANILA, Aug. 13 (PNA) — Net income of Metrobank Group’s thrift banking arm, Philippine Savings Bank (PSBank), fell to P1.1 billion in end-June 2014 from P2.9 billion same period in the previous year.

In a disclosure with the Philippine Stock Exchange (PSE) Wednesday, the bank noted, however, that its loan portfolio, net interest income and assets expanded in the first six months of 2014.

It disclosed that net interest income went up by 21 percent year-on-year to P3.8 billion from year-ago’s P3.2 billion.

Its loan portfolio grew by 14 percent to P92.5 billion over the end-June 2013’s P81 billion.

Also, total assets reached P141 billion, up by 20 percent year-on-year.

Relatively, deposits posted a 22 percent increase to P113.1 billion with the low-cost deposits, which is the current and savings accounts, rising by 25 percent.

Similarly, the bank’s capital further got a lift on back of the issuance of P3 billion worth of Basel III-compliant unsecured subordinated Tier 2 Notes last May.

This issuance resulted to further firming up of PSBank’s capital adequacy ratio (CAR), which is a gauge of a bank’s financial health, to 19 percent, higher than the 10 percent requirement set by the Bangko Sentral ng Pilipinas (BSP).

PSBank President Vicente R. Cuna Jr. said the capital raising activity made PSBank “well-positioned to meet the market’s aggressive demand for consumer loans.”

”We, however, remain vigilant in our credit processes to ensure we maintain the high quality of our loan portfolio,” he added. (PNA)