PBCom Q1 net income falls as expenses rise

PHILIPPINE BANK of Communication’s (PBCom) net income declined by 8% in the first quarter due to higher interest and operating expenses, it said on Monday.

The lender’s attributable net income stood at P496.13 million in the period, down from the P541.4 million in the same quarter last year, its quarterly report disclosed to the stock exchange showed.

This translated to a return on average assets and return on average equity of 1.36% and 11.13%, respectively, down from 1.71% and 13.66% a year prior.

The bank’s net interest income rose by 7.98% to P1.27 billion last quarter from P1.18 billion a year prior, mainly driven by higher interest earnings from loans, and even with interest expenses nearly doubling amid the increased cost of funds due to elevated interest rates.

Net interest margin stood at 4.02% at end-March, down from 4.27% a year prior.

PBCom’s total operating income grew by 6.28% to P1.6 billion in the first quarter from P1.51 billion in the comparable year-ago period.

Meanwhile, its operating expenses rose by 16.43% year on year to P937.78 million from P805.46 million amid higher spending on compensation, taxes, occupancy and other equipment-related costs, insurance, and miscellaneous items, among others.

The increase in expenses came even as its provisions for impairment losses declined to P1.82 million from P8.91 million last year.

PBCom’s loans and receivables declined by 4.26% to P87.87 billion in the first quarter from P91.77 billion at end-December, its financial statement showed.

Its gross nonperforming loan ratio went up to 3.15% from 2.77%.

On the funding side, deposit liabilities went down by 7.63% to P107.8 billion at end-March from P116.7 billion at end2023 amid lower time, demand and savings deposits.

The bank’s assets went down by 2.47% to P143.83 billion at end-March from P147.48 billion at the end of 2023.

Meanwhile, total equity rose by 2.03% to P18.01 billion from P17.66 billion.

The bank’s capital adequacy ratio was at 16.84% at end-March, while its liquidity ratio stood at 24.79%. —