PSBank eyes 23% income growth next year
12/17/2009 | 10:33 AM
Philippine Savings Bank (PSBank) expects profits to rise by almost a quarter next year, on the back of higher consumer loans as the economy recovers from a slump.
Pascual M. Garcia III, president at the Metrobank Group’s thrift banking arm, said PSBank was looking at a P1.35-billion net income for 2010, 23% higher than this year's target of P1.1 billion.
"People have not been spending much this year. People are holding back. But next year, we expect things to be different particularly when the elections are over and the results are credible," Garcia said.
He said he expects the bank’s consumer loans to grow by at least 12 percent, adding that the bank’s auto loans may grow by a tenth next year.
"We think we will exceed it," Garcia said of their net profit target this year, noting that bank lending has continued to grow despite the slow economy.
He said lending in November was higher than a month earlier, with a notable increase in auto loans in the aftermath of typhoons Ondoy and Pepeng, which left many parts of Luzon, including Metro Manila, flooded.
As of end-September, PSBank’s net income had reached P893 million, 23 percent higher year on year. The bank’s loan portfolio stood at P47.33 billion, 18 percent higher than a year earlier.
Garcia also said the bank might issue P2 billion worth of Tier 2 or supplementary capital in the second half of next year to fund its expansion.
He said in an earlier interview the bank might open 10 new branches particularly in rural areas to expand its customer base.
PSBank has a network of 170 branches and 285 automated teller machines nationwide.
The bank, Garcia said, might also undertake acquisitions next year. "We may still consider other options to raise capital depending on the opportunities," he said.
In 2008, the bank raised P2 billion in fresh capital from a stock rights offer to strengthen its capital adequacy ratio, which reached 18.85 percent by the end of the year from 15.7 percent in 2007.
PSBank’s ratio — a measure of a bank's ability to meet withdrawals — was better in 2006 at 19.4. As of September this year, its capital adequacy ratio stood at 14.73 percent.
PSBank is the second biggest thrift bank next to BPI Family Savings Bank, with assets worth P86.9 billion as of September. — Louella D. Desiderio, BusinessWorld
Pascual M. Garcia III, president at the Metrobank Group’s thrift banking arm, said PSBank was looking at a P1.35-billion net income for 2010, 23% higher than this year's target of P1.1 billion.
"People have not been spending much this year. People are holding back. But next year, we expect things to be different particularly when the elections are over and the results are credible," Garcia said.
He said he expects the bank’s consumer loans to grow by at least 12 percent, adding that the bank’s auto loans may grow by a tenth next year.
"We think we will exceed it," Garcia said of their net profit target this year, noting that bank lending has continued to grow despite the slow economy.
He said lending in November was higher than a month earlier, with a notable increase in auto loans in the aftermath of typhoons Ondoy and Pepeng, which left many parts of Luzon, including Metro Manila, flooded.
As of end-September, PSBank’s net income had reached P893 million, 23 percent higher year on year. The bank’s loan portfolio stood at P47.33 billion, 18 percent higher than a year earlier.
Garcia also said the bank might issue P2 billion worth of Tier 2 or supplementary capital in the second half of next year to fund its expansion.
He said in an earlier interview the bank might open 10 new branches particularly in rural areas to expand its customer base.
PSBank has a network of 170 branches and 285 automated teller machines nationwide.
The bank, Garcia said, might also undertake acquisitions next year. "We may still consider other options to raise capital depending on the opportunities," he said.
In 2008, the bank raised P2 billion in fresh capital from a stock rights offer to strengthen its capital adequacy ratio, which reached 18.85 percent by the end of the year from 15.7 percent in 2007.
PSBank’s ratio — a measure of a bank's ability to meet withdrawals — was better in 2006 at 19.4. As of September this year, its capital adequacy ratio stood at 14.73 percent.
PSBank is the second biggest thrift bank next to BPI Family Savings Bank, with assets worth P86.9 billion as of September. — Louella D. Desiderio, BusinessWorld
