Higher provisions drag down PSBank earnings
Philippine Savings Bank (PSBank) saw its net income drop by 21.3 percent to P944 million in the first quarter from P1.2 billion a year ago. This happened as the firm ramped up provisions amid market volatility and economic headwinds.
In a disclosure on Friday, the thrift banking arm of the Metrobank Group said its earnings reflected a “prudent stance” in loan provisioning. This was in response to the current geopolitical climate and uncertain economic conditions.
Credit provisions surged 73 percent to P716 million as of end-March, weighing on the bank’s profitability during the period.
Despite diminished earnings, PSBank continued to grow its lending business. It’s total loan portfolio rose 3 percent to P156 billion.
The increase was driven mainly by auto, mortgage and small and medium enterprise loans.
Net interest income also increased by 3 percent to P3.36 billion in the January-to-March period.
The bank also reported improved asset quality, with its gross nonperforming loan ratio easing to 3.6 percent as of March 31 from 3.7 percent at end-2025. This was also lower than the thrift banking industry’s 6.4-percent ratio.
Total deposits climbed 4 percent year-on-year to P177 billion, supported by deposit acquisition from the bank’s branches and digital onboarding platform.
PSBank’s total capital stood at P46 billion at the end of the quarter. Its capital adequacy ratio reached 23.9 percent, while the common equity tier 1 ratio settled at 22.9 percent.
According to PSBank, both ratios remained well above the minimum requirements set by the Bangko Sentral ng Pilipinas and ranked among the highest in the industry.
“These strong ratios provide cushion against emerging risks from present market volatility,” PSBank president Jose Vicente Alde said.
“Notwithstanding the current market conditions, we remain committed to support our customers’ financial requirements through a balanced approach of disciplined risk management and strategic expansion,” Alde added.
