Philippine Savings Bank (PSBank) saw its first-half net income decline 39.8 percent to P1.3 billion from P2.16 billion a year earlier, as the thrift banking arm of the Metrobank Group sharply increased loan provisions amid challenging market conditions.

The bank recorded P1.5 billion in loan provisions, a 76 percent increase from a year earlier, as it strengthened its buffers against emerging risks. Despite the higher provisions, core revenues remained resilient, with net interest income rising 2 percent year on year to P6.7 billion.

PSBank’s total assets reached P234 billion, up 5 percent from P223 billion as of 30 June 2025. Gross loans stood at P153 billion, slightly higher than a year earlier, supported by 6 percent growth in home loans and 11 percent growth in business loans.

Total deposits increased four percent to P177 billion, with low-cost current and savings account (CASA) deposits also growing four percent.

The bank attributed the increase to the continued expansion of its deposit base through its nationwide branch network and digital channels.

PSBank maintained a strong capital position, with P46 billion in equity.

Its Common Equity Tier 1 ratio stood at 23 percent, while its Capital Adequacy Ratio was 24 percent, both well above Bangko Sentral ng Pilipinas minimum requirements and among the highest in the Philippine banking industry.

As of end-June, the bank’s gross non-performing loan ratio was 4 percent, below the latest thrift banking industry ratio of 6.3 percent.