PSBank net income drops 5.1% in Q1

Philippine Savings Bank (PSBank) reported a 5.1% decrease in its net income for the first quarter, amounting to P646.2 million.

This decline was attributed to the bank's decision to significantly increase its loan loss provisions by 150% as a precautionary measure against the economic impact of the COVID-19 pandemic.

Despite the lower net income, PSBank saw a 21.8% increase in its net interest income, reaching P3.2 billion.

The bank's loan portfolio expanded by 3.6% to P165 billion, driven by demand before the enhanced community quarantine, while its gross nonperforming loan ratio remained stable at 3.7%.

Low-cost deposits saw a growth of 10.2%, reaching P60.6 billion.

PSBank maintained a total capital adequacy ratio of 17.2%, which is above the regulatory minimum of 10%.

During the quarantine period, the bank continued operations with 80% of its branches open, implementing safety measures for customers and employees.