Quick Takes: PSBank Nets PhP 2.16 Billion in First Half of 2025

PSBank, the thrift banking arm of the Metrobank Group, recorded a net income of PhP 2.16 billion in the first half of 2025.

The growth was fueled by steady performance in core businesses and continued measures to cut operational expenses.

Its loan book expanded by 16 percent year-on-year to PhP 153 billion as of June 2025, driven by stable demand from both consumer and SME lending segments.

Core revenues, composed of net interest income and service fees and commissions, rose 7 percent year-on-year to PhP 7.47 billion.

Operating expenses declined by 2 percent to PhP 4.54 billion, supporting the bank’s profitability.

Pre-provision operating profit increased by 6 percent to PhP 3.35 billion.

Credit provisions were higher this year following a one-time adjustment in the Expected Credit Loss model in 2024.

The gross non-performing loan ratio stood at 3.1 percent, below the industry average of 3.4 percent as of May 2025.

Total resources climbed to PhP 224 billion, while total deposits reached PhP 171 billion by mid-2025.

Total capital improved to PhP 46 billion, with a capital adequacy ratio of 24.6 percent and a Common Equity Tier 1 ratio of 23.5 percent, both exceeding regulatory requirements and ranking among the highest in the industry.

“As we enter the second half of the year, we remain committed to meeting our customers’ evolving needs by delivering innovative financial solutions in an increasingly competitive market,” said PSBank President Jose Vicente Alde.

PhilRatings recently awarded PSBank the highest Issuer Credit Rating of PRS Aaa (corp.) with a Stable Outlook, recognizing its strong capitalization, sound asset quality, solid market position, experienced leadership and the backing of its parent bank.

The bank’s bond offering period closed earlier than scheduled after orders exceeded six times the initial offer size within one day.

Proceeds from the issuance will provide long-term funding to support the bank’s expansion plans and diversify its funding sources.

PSBank’s first-half performance underscores its ability to balance growth with prudent risk management while maintaining strong capital buffers.