PSBank income shrinks to P1.1 billion in 2020
LISTED Philippine Savings Bank (PSBank) reported on Friday that its net income slid to P1.108 billion last year as it widened its loan-loss provisions amid the coronavirus pandemic.
The latest amount was a 63.4-percent decline from P3.02 billion in 2019.
In a disclosure on Friday, the thrift-banking arm of the Metropolitan Bank & Trust Co. said its operating income picked up by 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,” it added.
Gross revenues were 13 percent higher at P16.57 billion.
A significant expansion in lowcost current account and savings account (CASA) deposits and the decline in interest of term deposits resulted in its net interest income rising by 21 percent P13.75 billion.
CASA deposits soared by 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,” the lender said.
PSBank’s capital position remained strong at P34.51 billion. Its total capital adequacy ratio and common equity tier 1 ratio improved year-on-year to 19.4 percent and 18.1 percent, respectively.
Total assets reached P219.41 billion, while its net nonperforming loan ratio was at 5.2 percent.
PSBank President Jose Vicente Alde said the lender’s strong balance sheet and capitalization ensured its resiliency amid chal DOUBLE DRAGON lenges in 2020.
“As a matter of strategy, we took a conservative stance on credit provisioning in anticipation of risks associated with the pandemic,” he was quoted as saying in the disclosure.
He also said PSBank’s strengthened digital platforms allowed it to remain reliable and cope with the huge demand for digital banking services during the coronavirus crisis.
PSBank shares increased by 35 centavos or 0.64 percent to close at P55.35 each on Friday.