Philippine Savings Bank (PSBank) registered a year-on-year decline for two consecutive quarters, resulting in a 5-percent drop in its profits during the first semester.
The Metrobank Group’s thrift bank arm in a disclosure on Thursday reported that its net income in the first half slid by 5 percent to P1.3 billion. The bank’s operations in the first and second quarters registered a 5-percent drop each as well.
Core business, meanwhile, was robust, PSBank said. Net interest income for the period surged by 37.2 percent to P7.2 billion on the back of improved margins because of lower interest expense on deposits. Other operating income increased by P310.2 million due to sale of securities mainly.
PSBank more than doubled its credit provisioning to P2.8 billion in the first half to protect asset quality against the potential adverse impact of the pandemic.
“PSBank is likewise taking the conservative stance of building up its loan provisions in anticipation of potential risks due to the pandemic,” PSBank President Jose Vicente Alde said.
Loans and receivables were slightly up by 0.2 percent to P161.1 billion in the first half from last year’s P160.8 billion. Deposit liabilities, meanwhile, were flat at P178.1 billion, as low-cost deposits climbed by 13.4 percent to P63.4 billion.
Gross nonperforming loans ratio stood at 3.7 percent in the first half.
As of end-June, total assets inched up 0.7 percent to P233.2 billion from P231.5 billion year-on-year.
Capitalization reached P35.2 billion for the period, translating to a capital adequacy ratio of 18.1 percent and common equity tier 1 ratio of 17.2 percent. Both ratios are above the minimum regulatory requirement.
“We uphold our efforts in increasing our customers’ sense of protection whether they are in our branches or at their homes,” Alde said. “We’ve sustained and strengthened safety protocols in our premises and launched additional secured digital services for online and mobile transactions.”
Last month, PSBank declared 7.5-percent regular cash dividends for the second quarter, amounting to a total of P320.14 million. All the stockholders will receive payment by August 24.
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