Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank Group, more than doubled its income to P2.9 billion in the first half of 2013, the bank said in a statement.
PSBank said this was a 109 percent jump from P1.4 billion in the same comparable period on the back of continued expansion of its loan portfolio and gains from its investment portfolio.
It added that its first half performance already surpassed its P2.3-billion full-year net income in 2012.
“We are experiencing strong demand for both auto and mortgage loans," said president Vicente R. Cuna. "New loan releases surged by 45 percent from last year. If this pace holds up in the second half, our loan portfolio may be 22 percent to 24 percent higher than previous year," he added.
Net interest income grew 13 percent year-on-year to P3.2 billion due to a 16 percent increase in interest income from loans on expansion of its lending activities.
Gross loans went up by 21 percent to P81 billion as affordable interest rates and improving consumer sentiments continue to drive loan demand.
Even with the increase in loans, net non-performing loans (NPL) ratio remained low at 0.3 percent.
To further strengthen its balance sheet, the bank set aside P1.1 billion in additional loan provisions which increased the NPL coverage to 107 percent.
The bank said declining interest rates in the second quarter allowed it to recognize opportunities from investments in government securities.
Its equity was higher by 22 percent at P17.4 billion, translating to a higher capital adequacy ratio of 18.8 percent which is well above the 10 percent minimum required level for local banks.
PSBank currently has a distribution network of 222 branches and 536 onsite and offsite ATMs across the Philippines. — Danessa Rivera/VS, GMA News