Record high: PSBank net income topped P5B in 2024
Growth in its lending portfolio and “significant improvements” in asset quality allowed Philippine Savings Bank (PSBank) to attain a record-high net income of P5.2 billion last year, up by 15 percent.
In a stock exchange filing on Monday, the thrift banking arm of the Metrobank Group said its core revenues—composed of net interest income, service fees and commissions—inched up by 4 percent to P14.11 billion.
Total gross loans by end-2024 climbed by 15 percent to P144 billion on high demand across both its consumer and commercial lending segments.
Despite the loan growth, PSBank said its nonperforming loans ratio, a key indicator of asset quality, eased to 2.6 percent from 3.3 percent previously.
PSBank’s financial performance resulted in a return on equity of 12.4 percent from 11.7 percent in 2023.
“Our record-high performance reflects our commitment to sustainable growth and quality, and the unwavering trust of our clients,” PSBank president Jose Vicente Alde said in a disclosure to the Philippine Stock Exchange.
“Looking ahead, we expect to capitalize on the growing and evolving needs of consumers,” Alde added.
Monetary easing
The bank’s total assets stood at P216 billion, while total deposits reached P165 billion.
This comes after the Bangko Sentral ng Pilipinas began its monetary policy easing cycle in August, cutting the benchmark rate for overnight borrowing by 25 basis points.
It later slashed the rate by another 25 bps in October to 5.75 percent.
Rate cuts typically result in high demand for loans, as these reduce borrowing costs.
Ty family-led Metrobank, which owns 88 percent of PSBank, also saw its profit surge by 14 percent to a record P48.1 billion on its loan book expansion.
Net interest income climbed by 8.7 percent to P114.1 billion.
Commercial loans jumped by 17.7 percent on increased corporate capital spending, while consumer loans grew by 14.4 percent due to higher credit card receivables and auto loans.
As of end-December, Metrobank’s total assets stood at P3.52 trillion.
