PSBank's First-Half Net Income Drops 40% Amid Higher Loan Provisions

MANILA, Philippines — Philippine Savings Bank (PSBank) saw its first-half net income decline 39.8 percent to P1.3 billion, as the bank sharply increased loan provisions amid challenging market conditions. Despite the earnings decline from P2.16 billion a year ago, the thrift banking arm of the Metrobank Group said on Friday its core revenues remained resilient, with net interest income growing 2 percent to P6.7 billion. READ: Higher provisions drag down PSBank earnings “We remain committed to meeting our customers’ financing needs while maintaining a disciplined approach to lending,” PSBank president Jose Vicente Alde said. Total assets expanded by 5 percent to P234 billion as of end-June. Gross loans likewise edged higher to P153 billion, supported by a 6-percent increase in home loans and an 11-percent growth in business loans from a year earlier. READ: PSBank net income falls to P3.5B in 2025 Deposits grew 4 percent to P177 billion, with low-cost current account and savings account deposits also increasing by 4 percent. PSBank attributed the growth to its efforts to expand its deposit base through its nationwide branch network and digital channels. The lender maintained a capital position of P46 billion, with a common equity tier 1 ratio of 23 percent and a capital adequacy ratio of 24 percent. Both remained above the Bangko Sentral ng Pilipinas’ minimum regulatory requirements. The bank, however, booked P1.5 billion in loan provisions, 76 percent higher than a year ago, as it sought to strengthen buffers against emerging risks amid current market conditions. Despite the higher provisions, PSBank’s gross non-performing loan ratio stood at 4 percent as of end-June, below the latest thrift banking industry ratio of 6.3 percent. The bank also enhanced its PSBank Mobile platform with additional security features designed to give customers greater control and protection over their accounts. PSBank likewise waived InstaPay and PESONet transfer fees to make online transactions more affordable. INQ