PHILIPPINE Savings Bank booked a lower net income in 2020 as it hiked its loan loss provisions amid the pandemic.
The bank’s net profit stood at P1.108 billion last year, it said in a filing with the local bourse on Friday. This was 63% lower than the P3.03 billion it booked in 2019, based on its annual report for that year.
It tripled its loan loss reserves to P6.4 billion last year amid the crisis, it said.
“As a matter of strategy, we took a conservative stance on credit provisioning in anticipation of risks associated with the pandemic,” PSBank President Jose Vicente L. Alde said in a statement.
The bank’s gross revenues increased 13% to P16.57 billion. Meanwhile, operating income before provisions climbed 31% year on year to P7.45 billion in 2020.
Net interest income also increased 21% to P13.75 billion last year on the back of growth in its low-cost current account, savings account deposits and amid lower interest rate of term deposits.
Meanwhile, the bank’s operating expenses rose 2% in 2020.
PSBank’s capital position stood at P34.51 billion. Total assets closed at P219.41 billion as of end-2020.
The bank’s total adequacy ratio and common equity Tier 1 ratio stood at 19.4% and 18.1%, 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,” Mr. Alde said.
The bank’s shares went up by 35 centavos or by 0.64% to close at P55.35 apiece on Friday. — L.W.T. Noble