PSBank reports P1.1B net income

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    Philippine Savings Bank’s (PSBank) operating income surged to 31 percent before provisions to P7.45 billion last year. This enabled the bank to set aside additional loan loss provisions to three times over to P6.40 billion in view of the ongoing pandemic conditions.

    The bank closed 2020 with P1.108 billion net income.

    “On the back of a strong balance sheet and capitalization, the bank stayed resilient amidst the challenges of 2020. As a matter of strategy, we took a conservative stance on credit provisioning in anticipation of risks associated with the pandemic. The bank prioritized the safety of its employees and customers by quickly instituting Covid-19 safety protocols. We strengthened our digital platforms and made them reliable as the demand for digital banking services exponentially rose,” PSBank President Jose Vicente Alde said.

    “As the economy slowly opens up in 2021, we shall remain positive and hopeful that our recalibrated business models will deliver and continue to adapt to the new environment. We will continue to pursue our digital transformation roadmap by delivering on what is relevant and simple for the customer,” President Alde added.

    Gross revenues was 13 percent higher at P16.57 billion. Net interest income showed improvement by 21 percent to P13.75 billion, owing to a significant growth in low cost CASA deposits and the decline in interest of term deposits. CASA deposits grew 16 percent to P67.25 billion from P58.18 billion. In line with initiatives to improve operating efficiencies, operating expenses were kept in check and increased by only 2 percent.

    PSBank’s capital position remained strong at P34.51 billion. Total Capital Adequacy Ratio and Common Equity Tier 1 Ratio (CET1) further improved year-on-year to 19.4 percent and 18.1 percent respectively. Both are above the statutory requirement of 11 percent set by the Bangko Sentral ng Pilipinas. Total assets closed at P219.41 billion. Net non-performing loans ratio was at a manageable 5.2 percent.

    The Philippine Rating Services Corporation (PhilRatings) assigned PSBank the highest Issuer Credit Rating of PRS Aaa (corp.), with a Stable Outlook, citing on the Bank’s highly-experienced management team and strong capitalization thus having a very strong capacity to meet its financial commitments relative to that of other Philippine corporates.