PBB 2022 income growth rate hits 12.3%, 57.7% in Q1

PHILIPPINE Business Bank Inc. (PBB) announced a consistent increase in its net income, with a growth rate of 12.3 percent in 2022 and an impressive 57.7 percent in the first quarter of this year, according to separate disclosures made to the Philippine Stock Exchange (PSE).

The bank said it completed the P1.75-billion capital raise early this year, which included a P1.25-billion private placement by the Yao Family and Zest-o Corp. and a P500 million Stock Rights Offer (SRO). The proceeds increased PBB’S capitalization and enhanced the bank’s ability to expand its loan and investment securities portfolio.

In 2022, PBB posted a net profit of P1,311.4 million, a significant rise from P1,168.2 million the previous year. Similarly, the bank’s core income demonstrated a positive trend, reaching P3,085.3 million in 2022, representing a year-on-year growth of 10.4 percent. Pre-tax pre-provision profit reached P2,683.1 million in year-end 2022, a P142.8 million increase from last year. Net interest income also saw an increase, totaling P5,547.4 million in 2022.

PBB witnessed growth in loans and receivables, reaching P103.5 billion in 2022, demonstrating a 12.9 percent increase. On the funding side, total deposits amounted to P114.5 billion in year-end 2022.

Net profit

THE bank’s total resources stood at P134.6 billion in 2022. PBB’S total eq-uity amounted top 14.6 billion in 2022, resulting in a book value per share of P21.68 net of preferred shares.

During the first quarter of 2023, the bank reported a net profit of P488.8 million, compared to P310.0 million in the same period of 2022. Pre-tax pre-provision profit also significantly grew by 41.9 percent from 582.9 million in the first quarter of 2022 to P827.2 million in the first three months of 2023. Net interest income also recorded a P303.0 million increase to P1,598.5 million in the first quarter of 2023.

Loans and receivables further rose to P103.6 billion as of March 2023 while total deposits amounted to P111.1 billion in the first quarter of 2023.

In the first quarter of 2023, PBB raised a total of P1.75 billion capital which comprises the P1.25 billion private placement and P500 million from its SRO. The proceeds increased PBB’S capitalization and enhanced the bank’s ability to expand its loan, investment securities portfolio and partially comply with the minimum capital requirement for a universal bank license.

Upgraded license

PBB Chief Operating Officer Cynthia A. Almirez was quoted in a statement as saying they see “more and more people are opting for the speed and convenience of using mobile banking to pay bills, check their balances and make transfers on the go” as the Philippines further develops its digital sector.

“In line with this, PBB is expanding its reach by offering mobile banking services to suit the needs of its clients,” Almirez added. “The bank continues to show resilience despite the global market uncertainties, domestic challenges and interest rate hikes. PBB remains committed to delivering long-term value for its clients and shareholders.”

The PBB executive said the lender “will continue to capitalize its balance sheet, boost operational capabilities and improve its services.”

PBB’S adequacy ratio reached 13.85 percent in 2022, while the minimum liquidity ratio stood at 21.75 percent. In the first quarter of this year, the adequacy ratio was 13.56 percent, with the minimum liquidity ratio at 21.77 percent.

With an upgraded license, PBB will be able to provide a full-suite of financial services for a wider range of clients.