Philippine Savings Bank (PSB) announced earlier that it plans to raise PHP 8 billion through a stock right offering during the first quarter of 2019.
PSBank is the thrift lending arm of the Metrobank Group. It intends to issue another 184.70 million common shares which are equivalent to its remaining unissued shares.
No Final Date and Offer Price Yet
The transaction size and the offer price are still subject to regulatory approval and market conditions. First Metro Investment Corp. will stand as the issue manager and the underwriter of the offer.
On the other hand, Metrobank’s Trust Banking Group act as the stock transfer agent.
The bank stated that the proceeds from the offering would support the projected growth of the company.
Raising Funds for Basel 3 Compliance
In a separate disclosure last month, PSB announced that it would issue medium term-notes totaling PHP 10 billion to fund its consumer banking business. The bank also supplied long-term negotiable instruments in August amounting to PHP 5.08 billion with a coupon rate of 5 percent.
Most financial institutions have made capital raising endeavors in anticipation of BSP’s tighter risk management requirements. Furthermore, the increase is to comply with the international Basel 3 standard, which is set to take effect next year.
Dividend Declaration
Philippine Savings Bank also made a dividend declaration amounting to 7.5 percent for the third quarter of the year. It stands at PHP 0.75 per share, totaling PHP 180.19 million. It is payable to stockholders on October 30, 2018, and not later than November 14, 2018.
First Half Financial Performance
For the first six months of the year, PSB recorded a net income of PHP 1.35 billion. This figure is 14.72 percent, which is higher than the recorded PHP 1.18 billion in the same period in 2017.
This jump is attributable to higher net interest income.
Total interest income was higher by 13.99 percent at PHP 7.95 billion in 2018 versus the PHP 6.98 billion recorded in 2017.
Net interest income totaled PHP 5.85 billion, an increase of 8.74 percent versus the recorded PHP 5.38 billion in 2017.
Technical Analysis
PSB has made multi-year lows. The moving averages are bearishly aligned with the 20 SMA acting as stiff resistance today.
Volume is erratic but seems to lean towards the bears. MACD is bearish but is poised for a bullish crossover.
Moreover, RSI is turning bullish but is currently at neutral levels. Estimated support is at 75.00 followed by 72.17 while expected resistance is at 79.20.
Volume
As of October 17, 2018, at 03:30 PM, the volume of PSB is 342.86% of the previous trading day. This stock’s latest volume is still below its 30-day volume average.
Remember the correlation between price and volume.
bullish price + volume above the 30-day volume average = bullish
bullish price + volume below the 30-day volume average = neutral
bearish price + volume above the 30-day volume average = bearish
bearish price + volume below the 30-day volume average = bearish
Risk Level
PSB has a MODERATE-RISK level due to its risk percentage of 69.19%.
Foreign Fund Flow
PSB has a zero foreign fund flow as of October 17, 2018. On a 30-day trading period, PSB is on a Net Foreign Selling worth PHP597,133.00.
Top 10 Players’ Sentiment
Trading participants of PSB with a 100% Buying and Selling Activity as of Oct-17-2018 at 03:30 PM:
2 out of 4 participants or 50.00% of all participants registered a 100% BUYING activity
1 out of 4 participants or 25.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 78.6255
Top 10 Players’ Selling Average: 77.9500
The psychological average price of the top 10 players as of Oct-17-2018 at 03:30 PM is from 77.9500 to 78.6255.
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