Metrobank Group thrift arm unit Philippine Savings Bank (PSBank) has announced that its unaudited net income for 2010 hit the P1.8-billion mark or 46 percent higher than the P1.2-billion recorded in 2009.
The bank also reported breaching its P1.4-billion 2010 net income target as early as the third quarter last year.
With continuing improvements in its core revenues in 2011, PSBank expects to have a net income of P2.0 billion by the end of the year.
The net income of the country’s second largest thrift bank is supported by the growth in assets from P93.1 billion to P104.1 billion.
Of this amount, gross loans expanded by 15 percent to P55.6 billion with auto loans rising by 27 percent, mortgage loans by 11 percent and personal loans by nine percent.
PSBank’s investments portfolio, on the other hand, contributed an increase of 13 percent to P26.2 billion.
“The bank’s outstanding performance and growth in market share in 2010 were due to strong consumer demand, backed by product improvements and excellent customer service. Price is not the only factor that customers consider, they also look for speed in delivery, convenience and reliability,” PSBank president Pascual M. Garcia III said.
Total net revenues was higher by 31 percent at P8.3 billion in 2010 from P6.4 billion previously.
This mainly resulted from improved net interest income, which reached P5.0 billion with robust income from loans and investments.
Meanwhile, other operating income for the year improved 117 percent arising from the growth in fee income, foreign exchange and trading gains.
Its non-performing loan (NPL) amount, net of fully provided loans, declined to P2.5 billion in 2010 from P3.1 billion in 2009.
Likewise, PSBank set aside P912 million in provisions for the year, allowing its NPL coverage ratio to increase to 71 percent from 68 percent as of end-2009.
Deposits grew by 13 percent to P87.5 billion. It continues to expand its reach by opening a total of 10 branches and adding 57 new offsite ATMs last year.
PSBank ended the year with a network of 180 branches and 380 ATMs nationwide. PSBank is seen to open 15 new branches and an additional 70 offsite ATMs in 2011.