PSBank Q1 profit down 5.1%, provisions up

PSBank reported a 5.1% year-on-year drop in first quarter net profit to P646.2 million due to increased loan loss provisions amid the COVID-19 pandemic.

The bank set aside an additional P1.29 billion for loan losses, up from P514.86 million last year, as a precautionary measure.

PSBank's president stated that the decision was made to be prudent given the potential economic impact of the pandemic.

Despite the profit decline, net interest income rose by 21.8% to P3.2 billion and low-cost deposits grew by 10.2% to P60.6 billion.