Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, reported a 40 percent drop in net income to P1.3 billion during the first half of 2026, down from P2.16 billion recorded in the same period last year.
The bank attributed the decline largely to increased provisions for potential loan losses as it strengthened its financial buffers amid heightened risks in the market.
In a disclosure to the Philippine Stock Exchange on Friday, August 7, PSBank said its underlying operations remained steady, with net interest income increasing two percent year-on-year to P6.7 billion.
The bank’s total assets likewise grew five percent from the end of June 2025 to P234 billion.
Gross loans reached P153 billion, reflecting modest growth despite challenging market conditions. The increase was supported by a six percent rise in housing loans and an 11 percent expansion in business loans compared with the previous year.
Deposits also climbed four percent to P177 billion, while current and savings account deposits increased by the same rate. PSBank attributed the growth to its continuing efforts to expand its deposit base through its nationwide branch network and digital banking services.
The bank maintained strong capitalization, reporting total capital of P46 billion. Its common equity tier 1 ratio stood at 23 percent, while its capital adequacy ratio was 24 percent.
Both measures remained significantly above the minimum thresholds set by the Bangko Sentral ng Pilipinas and ranked among the stronger capital ratios in the domestic banking industry.
PSBank allocated P1.5 billion for loan loss provisions during the first six months of the year, representing a 76 percent increase from the previous year as the lender strengthened its protection against potential risks.
Despite the higher provisions, the bank’s gross non-performing loan ratio was 4 percent at the end of June 2026, below the latest 6.3 percent average reported for the thrift banking sector.
“We remain committed to meeting our customers’ financing needs while maintaining a disciplined approach to lending,” said PSBank President Jose Vicente Alde.
PSBank also enhanced its PSBank Mobile application by adding security features designed to give customers greater control and protection over their accounts.
The bank has likewise removed fees on InstaPay and PESONet transfers, making digital fund transfers more accessible and cost-efficient for its customers.