Taking measures against an uncertain future
Coming into the new year, the banking industry in the Philippines has a lot on their plate. As 2018 became known as a year of skyrocketing inflation, climbing interest rates, and a deteriorating peso, there is much apprehension as to what 2019 can bring. Will the new year continue to challenge the Philippine economy, or can it buck the trend and renew an era of economic prosperity? Even Philippine Business Bank (PBB), one of the country’s leading savings banks that focus on corporate and small and medium enterprises markets, are feeling the pressure from economic factors, both here and abroad. “We’re opening 2019 quite strong, but for me, I would rather be cautiously optimistic. What’s hard is that the times right now feel as though you’re walking in a field with landmines,” Rolando R. Avante, PBB president & CEO, told reporters in a briefing. This is despite ending 2018 on a positive note. From last year’s figures, PBB’s loan portfolio continues to grow, while the Bank’s deposits moved up, as well. As a result, all of PBB’s core brick-and-mortar business such as net interest income, service fees, and miscellaneous income improved versus the same period last year. Mr. Avante said that complicated times call for simpler, straightforward measures. From its beginning in 1997, PBB has pursued sound management and continued to expand with the local region. This year, as the bank celebrates 22 years of operation, PBB will be taking a strategy that hearkens back to such fundamentals, focusing on ‘the five C’s’ that have led the bank’s success so far: customer focus, credit quality, cooperation and cohesion, commitment, and control. He said that moving forward, the bank will take a more measured, more thorough look through its clients, taking care to avoid unnecessary risks and striving to improve relationships with clients that have good credit. PBB is also looking to raise cooperation within the bank, along with the commitment it expects from its people, to raise efficiency and ultimately have more control over its financial decisions. “Those five Cs are very fundamental if you take a look at it,” Mr. Avante said. “We’re trying to really keep ourselves focused on what we’d like to do.” That is not to say that the bank will be complacent this year. PBB plans to grow its client base by exploring new business opportunities in the consumer banking space while it continues to build on its strengths in the SME financing business. The bank also reaffirmed its commitment to strengthening its compliance system to its improve its relationships with its clients. “As we begin our 22nd year, PBB continues its long-standing tradition of offering local residents and businesses a true community bank alternative – one that focuses on the importance of local relationships and superior customer service. Our mission is to offer the quality products and services that today’s banking customer needs to achieve their financial goals,” Mr. Avante said. “Looking ahead, we will strengthen our initiatives on nationwide revitalization by actively participating as a regional financial institution. At the same time, we will take steps to offer greater convenience to our customers by offering SMEs support at the point of their need,” he added. Currently, PBB operates 155 branches across the Philippines.