Philippine Savings Bank doubles net profit to $12.9M

Philippine Savings Bank reported a net income to US$12.9 million in the first quarter of 2012.

The figure represent a 94 percent increase, which the bank ascribed partly to strong growth from its loan portfolio.

“Our first quarter loan releases have exceeded our forecast. We are experiencing strong demand for loans with new mortgage loan releases growing by 32 percent versus the similar period last year,” PSBank president Pascual M. Garcia III said.

Garcia said that should this trend continue, they may exceed thier net income target of P2.2 billion for the year.

The Bank’s gross loans expanded by 11 percent to P62.7 billion with both auto and mortgage loans posting double digit growths. Auto loans rose by 13 percent in spite of lingering supply issues due to the Thailand floods last year.

Likewise, mortgage portfolio increased by 10 percent benefiting from the Bank’s growing branch network and improved penetration of key mortgage developers.

Deposits grew by P6.6 billion from the previous year.

Capital also went up by 24 percent to P14.7 billion, as capital was supplemented by its P3.0 billion 10-year subordinated note issuance in February, which qualifies as Tier 2 capital. Capital adequacy ratio thus improved to 18.0 percent in March 2012.

Net revenue surged by P1.8 billion as the prevailing lower interest rate environment allowed the Bank to recognize gains from its investments in government securities. In line with the Bank’s thrust to further strengthen its balance sheet, additional provisions of P715 million were booked during the period. The coverage ratio increased to 98 percent of NPLs, which in turn, further improved to 2.9 percent of total loans.

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