PHILIPPINE SAVINGS Bank (PSBank) booked a lower net profit in the second quarter amid higher loss provisions due to the crisis.
PSBank’s net income stood at P647.6 million in the second quarter, down from the unaudited P681.38 million seen in the same quarter of 2019, it said in a statement on Thursday.
In the first semester, the lender’s net earnings stood at P1.3 billion, down 5% from the same period last year, it said.
The thrift banking arm of the Metrobank Group more than doubled its loan loss reserves to P2.8 billion in the first six months of the year from P1.1 billion in the comparable year-ago period, it said.
“PSBank is likewise taking the conservative stance of building up its loan provisions in anticipation of potential risks due to the pandemic,” PSBank President Jose Vicente L. Alde was quoted as saying.
Net interest income surged 37.2% to P7.2 billion in the first half on the back of improved margins from lower interest expense on deposits.
Meanwhile, other operating income increased by P310.2 million, supported by its sale of securities.
Excluding provisions for impairment and credit losses, operating expenses also rose by 6.2% year on year.
PSBank’s loans and receivables inched up by 0.2% to P161.1 billion. Its gross nonperforming loans ratio stood at 3.7%.
On the other hand, deposits were “almost flat” at P178.1 billion as low-cost deposits rose 13.4% to P63.4 billion.
Total resources increased by P1.7 billion to P233.2 billion.
The bank’s capital stood at P35.2 billion. Its capital adequacy ratio and common equity Tier 1 ratio stood at 18.1% and 17.2%, respectively, well beyond the required minimum.
Return on equity was at 7.43% as of June, down from 9.37% a year ago, the financial statement of its parent company showed. Meanwhile, return on assets stood at 1.13%, also lower than the 1.15% seen in the same period last year.
PSBank’s shares closed trading at P47.70 apiece on Thursday, slipping by 10 centavos or by 0.21% from its previous close. — LWTN