PhilRatings: PSBank obtains top credit rating, stable outlook

Philippine Savings Bank (PSBank), a member of Metrobank Group, received the highest credit rating of PRS Aaa and a stable outlook from the Philippine Rating Services Corporation (PhilRatings).

In a disclosure to the Philippine Stock Exchange on Wednesday, PhilRatings said PSBank will likely sustain profit growth due to its sound capitalization and asset quality, a positive outlook for its target market, and a highly experienced management team of its parent company.

"PSBank expects to maintain its strong capital position and further improve its asset quality, with the latter mainly supported by the robust growth of its loan portfolio," PhilRatings said.

Last year, PSBank recorded the highest net loans among thrift banks at P140.9 billion and maintained its spot as the third largest player in the sector in terms of total assets amounting to P214.9 billion.

As of end-March 2025, PSBank grew its gross loans by 19 percent to P152 billion compared to the first quarter of the previous year. Despite more loans, the bank managed to register a low gross non-performing loan ratio of 2.6 percent, much better than the 6.6 percent of the thrift banking sector.

"PSBank established itself as a major player in the consumer banking sector as it continued to hold a significant share in the thrift banking sector’s auto and real estate loans," PhilRatings said.

Meanwhile, PSBank's capital adequacy ratio remained strong at 23.5 percent in the first three months of the year, much higher than the 10 percent minimum level required by the Bangko Sentral ng Pilipinas.

Citing a report from Business Monitor International, PhilRatings said banks might see stronger demand for consumer loans this year as household spending is seen to rise by 5.3 percent from 5 percent in 2024.

Specifically, vehicle sales are projected to grow by 7 percent to 500,000 units this year based on data from the Chamber Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association.

"This optimistic outlook is attributed to the expected growth in remittances, business process outsourcing earnings, and a sound financial sector. The continued introduction of new models and brands is also anticipated to fuel growth in 2025," PhilRatings said.