This double-digit increase was propelled by expansion in the consumer loan portfolio, improvements in credit quality, and prudent expense management.
The bank’s net interest income rose by eight percent year-on-year to P2.95 billion, while net service fees increased by seven percent at P464.60 million.
Operating expenses were lower by five percent to P2.19 billion as the bank continued to pursue cost optimization strategies resulting from initiatives on operational efficiency.
Gross loans as of March 31, 2023, increased by four percent to P116 billion versus the same period last year due to higher consumer demand as the country’s economy opened up.
The bank’s auto loan portfolio grew by 13 percent year-on-year on the back of higher demand for car financing.
Improvements in asset quality were sustained with the gross non-performing loans ratio improving to 3.2 percent from five percent last year.
PSBank president Jose Vicente Alde said: “Even as interest rates and inflation remain high, elevated consumer spending continues to persist which has fueled significant retail loan demand for the early part of 2023.” (PR)