Thursday, 30 July 2009

Philippine Savings Bank posts 24% profit rise in H1, keeps ’09 goal

Erik de la Cruz
Business Mirror

PHILIPPINE Savings Bank (PSBank) posted a 24-percent increase in net income for the first six months of 2009 with both interest income and trading gains from government securities rising at double-digit pace.

The consumer-banking unit of the Metrobank Group on Wednesday said it had a first-half net income of P623 million after setting aside loan-loss provisions of P542 million. It did not disclose its results for the second quarter.

The bank previously reported a 21-percent increase in first-quarter net income to P303.73 million.

Given its improved performance, the bank is keeping its full-year net income guidance of P1.1 billion, said its president Pascual Garcia III.

Amid the economic downturn which, according to the international credit-rating agencies, might result in loan defaults, PSBank increased its loan- loss provisions for the first six months from P240 million in June 2008.

Net interest income rose 27 percent to P2.25 billion, with the bank’s loan portfolio expanding by 17 percent. Personal loans increased by 16 percent, while mortgage and auto loans grew by 13 percent and 11 percent, respectively.

Consumer loans accounted for the bank’s total loan portfolio. The first half saw the bank lending aggressively to big corporate borrowers.

Noninterest income increased 33 percent to P826 million, with “strong growth” also coming from the bank’s investments in government securities. The bank attracted additional deposits, which increased by 22 percent to P68 billion, with peso deposits expanding by 21 percent and dollar deposits by 25 percent.

“Customers are now more prudent with their money and opt to build on their savings rather than spend it on unnecessary purchases,” Pascual said in a statement. “This protects them from uncertainties brought about by the global crisis.”

One of the biggest thrift banks in the country, PSBank’s total assets rose to P83.6 billion as of end-June from P81.56 billion as of end-March.

Its capital adequacy ratio, a measure of a bank’s capital strength against risk-weighted credit risks, stood at 14.95 percent—above the minimum regulatory requirement of 10 percent—while its return on average equity was at 13.63 percent as of end-June.

The bank ended the first half with 165 branches and 248 automated teller machines, and this month opened its 166th branch at Puerto Princesa in Palawan. It plans to open nine more branches before the year ends.

Of the 100 additional automated teller machines it plans to put up this year, 66 had been made operational in the first half, Garcia said.

1 comment:

  1. Seems like the banking industry here in the Phils isnt affected very much.

    Even BPI is doing good in keeping their standing.