PSBank posts 30% increase in Net Income for 1st Half of 2010

Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank Group, reported a net income of Php807.6 million as of June 2010, a 30% increase from the same period last year.

Net revenue grew by 21% to Php3.7 billion due to higher loan portfolio and stronger trading profits. Income from loans rose to Php2.8 billion on account of improved earnings across its auto, mortgage and SME businesses.

PSBank’s total assets increased by 7% to Php89.9 billion as its loan portfolio expanded by 15% to Php52.2 billion. Auto loans posted the highest growth of 21% which is consistent with the auto industry sales trend and buoyed by high consumer confidence. Mortgage loans, its second biggest portfolio, likewise grew by 10% while personal loans moved up by 6%. PSBank has the only loan rebate program in the market. This feature gives rebates to customers who make advance or excess loan payments.

Deposits likewise expanded by 9% to Php74.6 billion as PSBank continues to benefit from its various deposit generation campaigns and expanded branch and ATM network. As of end-June 2010, PSBank had a network of 175 branches and 340 ATMs nationwide. It opened a total of 5 branches and added 28 new offsite ATMs in the first half of 2010.

The Bank declared special dividends of Php660.7 million or Php2.75 per share last February 2010. These dividends are on top of the regular quarterly dividends of 1.5% or Php0.15 per share that PSBank gives to its shareholders.

PSBank’s President Pascual M. Garcia III said he is confident that the bank will meet its net income target for the year of Php1.4 billion. The bank’s audited net income for 2009 was Php1.2 billion.