Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, reported P3.5 billion in net income for 2025, supported by continued expansion in its lending portfolio.

In a Friday disclosure to the local bourse, the bank said net interest income rose 7 percent to P13.17 billion, driven by an 8 percent increase in total loans to P155 billion.

Despite the loan growth, PSBank said its net income declined compared with the previous year due to higher credit provisions, a move aimed at strengthening the bank’s balance sheet and maintaining prudent risk management.

The bank’s gross non-performing loan (NPL) ratio stood at 3.68 percent, while operating expenses were kept in check, rising only 3.6 percent to P9.56 billion.

Funding also improved during the year, with total deposits climbing 9 percent to P180 billion, while capital increased 5 percent to P46 billion.

PSBank maintained strong capital buffers, with its capital adequacy ratio at 24.3 percent and common equity tier 1 ratio at 23.3 percent, both well above the regulatory minimums set by the Bangko Sentral ng Pilipinas and among the highest levels in the industry.

During the year, Philippine Rating Services Corp. reaffirmed PSBank’s PRS Aaa (corp.) issuer credit rating with a Stable Outlook, the highest possible rating under the agency’s scale.

The bank also completed a bond issuance that attracted demand more than six times the base offer in a single day, providing additional long-term funding for future growth.

“Looking ahead, we will continue to build on our strengths and remain committed to delivering simplified banking solutions that help our customers achieve their financial goals,” said PSBank President Jose Vicente Alde.