Money

PSBank dumps P6.43B in investments in June as Ty family digs in for impact of ‘prolonged pandemic’

Philippine Savings Bank has dumped a significant chunk of its investments portfolio to remain liquid with no end in sight to the coronavirus crisis.

The bank, which is 88 percent-owned by the Metrobank Group of the Ty family, said it sold P6.43 billion worth of peso-denominated investment securities in June 2020. PSBank said it realized a P469.73 million gain from the divestment.

“The sales were made as there were changes in the Bank’s funding requirements given its assessment of the impact of a prolonged pandemic. The sale is not inconsistent with the Bank’s Hold-to-Collect (HTC) business model as the sale was considered infrequent even if significant in value,” PSBank said.

PSBank jacked up its provisions for bad loans by 142 percent to P2.78 billion in the first six months as a “prudent” move in the face of the adverse impact of COVID 19 to the economy.

The bank’s profits shrank five percent to P1.3 billion in the first six months of 2020.

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