Philippine Savings Bank (PSBank) booked a double-digit growth in its net income in the first quarter of 2018, on the back of strong revenues.
In a statement made to the local bourse on Thursday, the thrift banking arm of Metropolitan Bank & Trust Co. said its net profit grew 25.4% to P641.1 million in the January to March period, up from the P511.1 million tallied in the same period last year.
PSBank attributed the profitable results to “strong revenues, composed of net interest margin and other operating income.”
The bank’s total operating income was at P3.7 billion last quarter, a 15.6% jump from the P3.2 billion logged year-on-year.
PSBank’s loan portfolio grew 11.7% to P149.2 billion, supported by the bank’s consumer loan business.
As a result, net interest income improved by 10.4% to P2.9 billion from last year’s P2.6 billion, according to the lender’s separate quarterly report.
The pickup in lending came alongside the deposit growth, rising by 9.2% to P186 billion.
PSBank’s net profit from service fees and commission rose 8.4% to P362.2 million last quarter from the P334 billion logged in a comparable year-ago period. Other operating income, meanwhile, jumped 77.8% to P406.8 million from last year’s P228.8 million.
Overall, PSBank’s total resources expanded to P224.8 billion, up 9.4% year-on-year.
“The improvement in our performance this quarter is a result of the year-on-year momentum brought about by our strategy to focus on exceptional customer experience, digitization of products and channels, and automation of backroom processes,” said PSBank President Jose Vicente L. Alde in a statement.
“These resulted to an expansion of our market stronghold and good bottom line performance.”
The lender’s net interest margin was at 1.52% as of end-March, slightly down from 1.53% in the same period last year.
Capital adequacy ratio and common equity tier 1 ratio, on the other hand, were at 13.75% and 11%, respectively. — Karl Angelo N. Vidal