By Doris Dumlao
Philippine Daily Inquirer
Philippine Savings Bank, The Metrobank group’s thrift banking arm, posted a 21-percent year-on-year growth in first-quarter net profit to P303.73 million as core business expanded while asset quality improved despite the generally gloomy outlook on the domestic economy.PSBank president Pascual Garcia III told the Philippine Stock Exchange that the banks’ net interest income rose 24 percent to P1.04 billion from the same period last year with strong growth coming from its core lending during the first quarter.
“Our first quarter results set us well on the path of growing our net profit to P1.1 billion [17 percent growth] this year,†Garcia said.
Net interest margins, the difference between income produced by a bank’s earning assets and interest paid to depositors, increased to 5.3 percent from 4.9 percent due to the growth in investments.
“The double-digit growth in the first quarter of 2009 affirms strategic efforts we have taken in anticipation of any lingering effects of the global economic crisis. We’re pleased to note that net profit increased by 21 percent in spite of higher provisioning,†Garcia said.
Gross loans surged 17 percent from a year ago, fueled by consumer loans, which grew 16 percent. The bank reported that demand for auto loans remained good although mortgage loan releases slightly eased during the first three months.
PSBank also reported a decline in non-performing loans as a ratio of total loans to 5.4 percent from 6.2 percent, aided by its improved automated collection processes.
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