High auto loans demand drives PSBank profit

The Philippine Savings Bank, or PSBank, the thrift bank unit of the Metrobank group, grew its net income to P3.37 billion in the first nine months, up by 18 percent compared to the level in the same period last year due to a surge in auto loans.

The bank's disclosure to the Philippine Stock Exchange on Monday revealed net interest income increased to P8.82 billion, driven by a 12 percent growth in loan portfolio amounting to P123 billion. Auto loans provided a boost, climbing by 24 percent.

Gross non-performing loans ratio improved to 3.4 percent as more clients have recovered from the pandemic.

Revenues from service fees contributed P1.33 billion, while operating costs decreased by 1 percent.

Innovation as navigation tool

"Despite the unpredictable headwinds, we remain focused on sustaining our strong results while we continue to innovate on products, services and processes consistent with our commitment to deliver effortless banking to our customers," PSBank president Jose Vicente Alde said.

Meanwhile, deposits amounted to P188 billion which resulted in total assets worth P236 billion.

Capital increased to P40 billion, while return on equity also improved to 11.7 percent.

PSBank remained well-capitalized with a capital adequacy ratio of 24.6 percent and a common equity tier 1 ratio of 23.7 percent. Both are among the highest compared to the minimum requirement set by the Bangko Sentral ng Pilipinas.