PSBank 2011 profits hit record-high at P2-B

MANILA, Philippines – The country’s second largest thrift bank’s net income in 2011 hit a record high of P2 billion in 2011 on the back of higher on higher loan volume and interest margins.

In a disclosure to the stock exchange on Wednesday, February 22, Philippine Savings Bank (PSBank) said its profits grew 14% in 2011 from P1.8 billion in 2010.

Below are the highlights of its financial performance for 2011:

• Assets at P120.3 billion, a 15% growth from P104.1 billion in 2010
• Gross loans at P66.1 billion, a 9% growth (attributed to auto and mortgage loans expanding by 13% and 9%, respectively.
• Deposits grew 16% due to 20 new locations, increasing branch network to 200 at end-2011
• Capital at P15.5 billion, a 34% growth from P11.6 billion
• Capital adequacy ratio at 13.9%
• Non-performing loan ratio declined to 3.1% vs 6.2% industry average among thrift banks

Over 3/4 of PSBank’s revenues are from retail lending operations, specifically auto and housing loans.

The vehicle industry experienced a 3.2% decline in sales due supply constraints from the Thailand floods and Japan twin disasters in 2011. PSBank stressed it posted a higher loan portfolio despite this and the interest rate competition on mortgage loans.

Investments in government securities likewise rose by 18% to P31.1 billion due to the increase in the funding base of the Bank.

Corona trial

PSBank was thrown into national limelight after one of its valued and politically-exposed clients, Chief Justice Renato Corona, was impeached. At the impeachment trial, PSBank officials testified that Corona has multi-million peso and dollar accounts with its Katipunan branch.

One of the contentious issues at the impeachment trial was the leak of the bank documents of Corona. The Bangko Sentral ng Pilipinas had denied that its examiners had access to Corona’s deposit accounts and said PSBank was lax in complying with anti-money laundering rules with regards to Corona, their valued client.

The trial has not deterred investors from snapping up the P3 billion-worth AAA-rated bonds floated by PSBank in February. The bond offer was twice oversubscribed.

PSBank is the thrift bank unit of Ty-led universal bank Metrobank, one of the country’s biggest banks. – Rappler.com