PBCom’s net earnings rise in the 3rd quarter
THE PHILIPPINE Bank of Communications (PBCom) posted a 23.5% increase in its income in the third quarter mainly driven by gains from the bank’s core business.
In a statement e- mailed to reporters on Monday, the listed bank said its consolidated net income for in the July to September period came in at P131.2 million, up 23.5% from P106.284 million in the same period last year.
The net profit seen for the three-month period brought its net income for the first nine months of the year to P189.1 million, almost flat from the P189.808 million booked in the same period in 2015.
“PBCOM’s effort in improving its quality of earnings and balance sheet has resulted to consistent gains over the three quarters of 2016,” the bank said.
Net interest income in the third quarter increased 17.3% to P658.8 million due to “higher revenues from its investment and loan portfolios,” PBCom said in the statement.
The bank’s non-interest income also posted growth, it said, driven by higher foreign exchange (FX) gains and fee income, although it did not provide figures.
“Operating expenses in third quarter 2016, without credit cost, dropped 7.1% or P51.8 million better compared to its corresponding period in 2015,” PBCom said.
Consequently, the bank booked a 9.9% growth in its net interest income for the first nine months of the year to P1.88 billion driven by an expansion in the bank’s loan and deposit taking businesses.
“Non-interest income, net of the fair value gain of P378.6 million booked last year, grew to P796.4 million with trading and FX gains up by P81.3 million or 350.4% from the gains registered in nine months in 2015. Operating expenses have decreased by P54.3 million despite expanding volumes in the bank’s core business activities,” PBCom said.
“Net assets stood P84.52 billion in the January to September period, up from P72.22 billion a year ago on the back of growth in its loans and receivables... Capital remained strong at P10.49 billion. The scheduled capital infusion by PG Holdings, Inc. was earlier advanced to June 29, 2016 as a commitment to ensure the bank is well capitalized for its planned growth strategies,” the bank said.
PBCom’s shares ended at P21.90 apiece yesterday, down by 15 centavos or 0.68% from Nov. 8’s close of P22.05 each. •