PSBank to sell P15B LTNCTD

The Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank group, recently obtained approval from the Bangko Sentral ng Pilipinas (BSP) to sell up to P15 billion worth of so-called long-term negotiable certificates of time deposit (LTNCTD) notes.

On 21 May 2018, the board of directors at PSBank approved the issuance of the LTNCTD through two or more tranches over a period of one year. The LTNCTD represents for PSBank an opportunity to access long-term funding as the lender further expands its consumer banking business.

LTNCTD are bank products with long tenors offered to investors looking for a higher interest rate compared to regular savings accounts or shorter-term deposits. They are tax-exempt for qualified individuals if held for at least five years. They are insured by the Philippine Deposit Insurance Corp. (PDIC) up to a maximum coverage per depositor, currently at P500,000.

The final terms, including offering period and interest rates, will depend on market conditions.

In the first quarter, PSBank reported a 25 percent increase in net income to P641.1 million from only P511.1 million in the same period last year, underpinned by strong revenues composed of net interest margin and other operating income.

Total operating income for the period rose 15 percent to P3.7 billion from P3.2 billion a year earlier as total loan portfolio rose 11.7 percent to P149.2 billion, driven by its consumer loan business.

PSBank has 250 branches and more than 600 ATM strategically located nationwide.