PHILIPPINE RATING Services Corp. (PhilRatings) has kept Philippine Savings Bank’s (PSBank) issuer credit rating at PRS Aaa (corp.) with a stable outlook.

A PRS Aaa (corp.) rating means that a company has a “very strong” capacity to meet its financial commitments compared to other Philippine firms. It is the highest issuer credit rating given by PhilRatings.

The stable outlook means the rating is likely to be maintained or stay unchanged in the next 12 months.

“The assigned rating and outlook take into account the following key considerations: (1) PSBank’s solid market position; (2) its sound capitalization and asset quality; (3) the bank’s strong parent and highly-experienced management team; and (4) the positive outlook for the bank’s major market,” PhilRatings said in a statement.

PSBank, the thrift unit of Metropolitan Bank & Trust Co. (Metrobank), was the largest thrift bank in the country in asset terms at end-2024 with P214.9 billion, latest Bangko Sentral ng Pilipinas (BSP) data showed.

PhilRatings said in its report that the bank also took the top stop in the sector in terms of net loans (P140.9 billion) and capital (P42.5 billion).

“PSBank has also established itself as a significant player in the consumer banking sector as it continued to hold a significant share in thrift banking sector’s auto and real estate loans,” it said.

Meanwhile, its capital adequacy ratio stood at 23.5% as of March, broadly steady from the end-2024 level of 23.6% and well above the BSP’s 10% minimum requirement.

“On the other hand, gross nonperforming loan ratio continued to be more than acceptable at 2.6%, significantly lower than the thrift banking sector’s 6.6% as of end-March 2025,” PhilRatings said.

“Moving forward, PSBank expects to maintain its strong capital position and further improve its asset quality, with the latter mainly supported by the robust growth of its loan portfolio,” it added.

PhilRatings said the bank’s major market, the consumer sector, is expected to continue growing amid strong household spending and easing inflation, which will help drive demand for credit and benefit PSBank.

“In particular, the projected modest growth in 2025 for the Philippine automotive industry is expected to benefit PSBank, given that bulk of its portfolio is in auto loans. The Chamber Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association forecast car sales to reach 500,000 units, a 7% increase from 2024. This optimistic outlook is attributed to the expected growth in remittances, business process outsourcing earnings, a sound financial sector, government spending, and election-related expenditures, all of which are expected to drive demand,” it said.

“The continued introduction of new models and brands is also anticipated to fuel growth in 2025. The sale of electric vehicles is expected to increase by 7%, with the volume reaching 20,000 units for the first time, and accounting for 4% of the industry’s target of about 500,000 vehicle sales.”

Philippine banks’ consumer loans stood at P3.18 trillion as of March, led by residential real estate loans at P1.13 trillion, credit card receivables at P960.66 billion, and auto loans at P600.28 billion, BSP data showed.

PSBank’s net income rose by 0.59% year on year to P1.21 billion in the first quarter.

Its shares climbed by 55 centavos or 0.95% to close at P58.50 each on Wednesday. — A.M.C. Sy