Money

PSBank earnings dive as bad loan provisions triple

Philippine Savings Bank saw its 2020 profit fall by 63.4 percent to P1.11 billion as it made huge provisions to counter the potential impact of the coronavirus crisis.

Provisions for bad loans jumped three-fold to P6.4 billion.

PSBank’s operating income surged by 31 percent before provisions to P7.45 billion while gross revenues went up 13 percent to P16.57 billion.

Net interest income climbed 21 percent to P13.75 billion driven by the significant growth in low cost CASA (current account savings account) deposits and the decline in interest of term deposits. CASA deposits went up 16 percent to P67.25 billion.

PSBank said its capital position remained strong at P34.5 billion while total capital adequacy ratio and common equity tier 1 ratio further improved year on year to 19.4 percent and 18.1 percent, respectively.

“As the economy slowly opens up in 2021, we shall remain positive and hopeful that our recalibrated business models will deliver and continue to adapt to the new environment. We will continue to pursue our digital transformation roadmap by delivering on what is relevant and simple for the customer,” said Jose Vicente Alde, PSBank president.

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