Philippine Savings Bank (PSBank) reported a net income of P2.16 billion in the first six months, 15.6 percent lower compared to the same period last year of P2.56 billion due to higher loan loss provisioning.
PSBank, the thrift banking unit of the Metrobank Group, said late Friday that efforts to reduce operational expenses helped its core businesses maintain steady growth.
“As we enter the second half of the year, we remain committed to meeting our customers’ evolving needs by delivering innovative financial solutions in an increasingly competitive market,” PSBank President Jose Vicente Alde said.
In a disclosure to the Philippine Stock Exchange on August 8, the bank said lending to consumers and small and medium enterprises (SMEs) as of end-June increased by 16 percent year-on-year to P153 billion.
Core revenues from net interest income, service fees and commissions, went up by 7 percent year-on-year to P7.47 billion as of end-June while operating expenses fell by 2 percent to P4.54 billion.
Pre-provision operating profit, meanwhile, grew by 6 percent to P3.35 billion, the bank said.
While the bank had enough loan loss reserves in the first six months of the year, it said “credit provisions were higher this year as the bank booked a one-time adjustment in its ‘Expected Credit Loss’ model in 2024.”
Its soured loans or gross non-performing loan ratio remained at 3.1 percent. The bank said this was lower than the industry average of 3.4 percent as of May 2025.
PSBank is the country’s biggest thrift bank with total resources of P224 billion. Its deposit base was also steady at P171 billion as of end-June. The bank’s total capital, on the other hand, improved to P46 billion.
As of end-June, its capital adequacy ratio was at 24.6 percent while its common equity tier 1 ratio stood at 23.5 percent. Both ratios are higher than central bank benchmarks.
The Philippine Rating Services Corporation has recently assigned PSBank the highest Issuer Credit Rating of PRS Aaa (corp.) with a stable outlook.
The bank said the latest rating is an indication of its “solid market position, sound capitalization and asset quality, strong support from its parent bank, experienced management team, and the positive outlook for its core market.”
Last week, PSBank launched a peso bond offer for the third tranche of its P40 billion bond program. Proceeds will be allotted as long-term funding and diversification of resources.
Due to strong demand however, PSBank shortened the offer period since it was already 6 times oversubscribed. The initial offer period was August 4 to 8, 2025, but the bank decided to end it ahead of schedule.
The bank’s latest peso bond sale has a tenor of two years with a fixed interest rate of 5.875 percent per annum. The issue and listing date on the Philippine Dealing Exchange is August 18, 2025.
