PSBank's 2012 first quarter net income surged to P546 million, 94% or P264 million higher compared to the same period last year, as the Bank took advantage of opportunities in its investment portfolio. The record net income is likewise supported by strong growth from its loan portfolio.
The Bank's gross loans expanded by 11% to P62.7 billion with both auto and mortgage loans posting double digit growths. Auto loans rose by 13% in spite of lingering supply issues due to the Thailand floodds last year. Likewise, mortgage portfolio increased by 10% benefiting from the Bank's growing branch network and improved penetration of key mortgage developers.
Deposits grew by P6.6 billion from the previous year. The Bank opened 6 additional branches in the first quarter thus increasing its branch network to 206. Meanwhile, PSBank has the 7th largest ATM network in the country with 515 ATMs.
Capital also went up by 24% to P14.7 billion. The Bank's capital was supplemented by its P3.0 billion 10-year subordinated note issuance in February, which qualifies as Tier 2 capital. The issuance was more than 2X oversubscribed. The Notes were rated PRS Aaa by Philippine Ratings Corporation. Capital adequacy ratio thus improved to 18.0% in March 2012.
Net revenue surged by P1.8 billion as the prevailing lower interest rate environment allowed the Bank to recognize gains from its investments in government securities.
In line with the Bank's thrust to further strengthen its balance sheet, additional provisions of P715 million were booked during the period. The coverage ratio increased to 98% of NPLs, which in turn, further improved to 2.9% of total loans.
"Our first quarter loan releases have exceeded our forecast. We are experiencing strong demand for loans with new mortgage loan releases growing by 32% versus the similar period last year. Given the strong first quarter results, we are raising our loan growth targets. Should this trend continue, we may exceed our net income target of P2.2 billion for the year." PSBank President Pascual M. Garcia III said.