MAKATI CITY, Philippines — Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, reported a 21.3-percent drop in its net income for the first quarter of 2026. The decline was largely due to a strategic decision to ramp up credit provisions as a buffer against global market volatility.
According to a disclosure filed on Friday, May 8, 2026, the bank’s net income for the January-to-March period settled at ₱944 million, down from the ₱1.2 billion recorded in the same quarter last year.
The primary factor weighing on the bank’s bottom line was a sharp increase in its “cautious” provisioning stance.
- Surge in Provisions: PSBank set aside ₱716 million in credit provisions during the first quarter—a 73-percent jump compared to the previous year.
- Rationale: PSBank President Jose Vicente Alde stated that the move reflects a “prudent stance” in response to current geopolitical tensions and an uncertain global economic climate. These buffers are intended to protect the bank’s balance sheet from emerging risks and market fluctuations.
Despite the lower net profit, PSBank’s core lending and deposit businesses showed steady growth, signaling healthy consumer demand.
| Financial Metric | Q1 2026 Performance | Year-on-Year Change |
| Total Loan Portfolio | ₱156 Billion | +3% |
| Net Interest Income | ₱3.36 Billion | +3% |
| Total Deposits | ₱177 Billion | +4% |
| Gross NPL Ratio | 3.6% | Improved (from 3.7%) |
Portfolio Drivers: The 3-percent expansion in the loan book was primarily fueled by sustained demand for auto loans, mortgages, and credit for small and medium enterprises (SMEs).
The bank maintains one of the strongest capital positions in the Philippine thrift banking industry, significantly exceeding the requirements of the Bangko Sentral ng Pilipinas (BSP).
- Capital Adequacy Ratio (CAR): 23.9%
- Common Equity Tier 1 (CET1) Ratio: 22.9%
- Asset Quality: The bank’s gross non-performing loan (NPL) ratio of 3.6% is notably better than the thrift banking industry average of 6.4%.
“These strong ratios provide a cushion against emerging risks from present market volatility,” Alde noted. “We remain committed to supporting our customers’ financial requirements through a balanced approach of disciplined risk management and strategic expansion.”