PSBank surpasses target

THE PHILIPPINE Savings Bank (PSBank) is revising its net income target for the year after it streaked past its P1.4-billion goal with a little over two months in the year remaining.


“Yes, we are revising it but I can’t disclose it,” Pascual M. Garcia III, PSBank president told BusinessWorld, citing the stock exchange’s disclosure rules.

“Suffice it to say, at this time, that we are confident of ending higher than P1.5 billion,” he added.

PSBank, the thrift banking arm of the Metrobank Group, aimed for P1.4 billion in net income this year, up from P1.24 billion in 2009.

In a disclosure to the stock exchange yesterday, the bank reported it earned P1.5 billion in net income in the nine months to September, 71% higher than a year earlier.

It also said its net income in the third quarter alone reached P724 million, 168% higher than in the same period a year ago.

PSBank said its performance was backed by income from loans, gains from trading and service charges.

“Net revenue grew by 34% to P6.2 billion due to the expansion of the bank’s loan portfolio and income generated on its trading investments,” it said.

It recorded P4.4 billion in income from loans, it said, as it extended more auto, mortgage and personal loans. Its non-performing loan ratio, or the percentage of sourced loans to total loans, was at a low 4.1%.

PSBank said gains from trading were 279% higher, but did not cite a figure, while service charges were 22% higher, but did not disclose a figure either.

Banks are reaping huge gains from trading securities, as interest rates slide given the tame inflation environment. Bond prices rise as interest rates fall.

“The exceptional net income for the first nine months of the year, which already exceeded the bank’s full-year target of P1.4 billion, while supported by the expansion of our loan portfolio, was aided by opportunities provided by our investments. The prevailing lower interest rate environment has allowed us to recognize these unprecedented financial results,” Mr. Garcia was quoted as saying in the disclosure.