PBB profits jump 39% to ₱1.82 billion

Businessman Alfredo Yao's Philippine Business Bank (PBB) reported a 39.1 percent jump in net income to ₱1.82 billion last year from the ₱1.31 billion earned in 2022 as core income reached P3.1 billion.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its pre-tax preprovision profit was at ₱3.39 billion, a 26.5 percent increase year-on-year while profit before tax rose by 25.6 percent to ₱2.34 billion in 2023.

PBB reported a net interest income of ₱6.42 billion in 2023, up 15.8 percent from the ₱5.55 billion in 2022 as total resources amounted to ₱154.4 billion as of December 2023, up 14.8 percent.

Total net loans and receivables stood at ₱117.6 billion as of end-december 2023 from ₱103.5 billion in the same period last year, for a 13.5 percent increase year-on-year.

On the funding side, deposit liabilities were ₱126.7 billion as of the end of 2023, from ₱114.5 billion in 2022. Low-cost deposits (CASA) ended at ₱68.3 billion, while time deposits reached ₱58.4 billion.

Net interest margin was at 4.63 percent, 30 basis points higher than 2022’s 4.33 percent. The bank said it maintains its non-performing loans within reasonable bounds and still delivers an attractive NIM at 4.63 percent.

The bank’s capital adequacy ratio was 13.1 percent and minimum liquidity ratio at 25.8 percent in December 2023, both above the statutory requirement of 10 percent and 20 percent, respectively.

“PBB’S outstanding performance in 2023 was driven by the Bank’s asset expansion, improved interest rate margins, and lower costto-income ratio. The Bank’s performance despite the stiff competition in the industry is indicative of PBB’S expansion as a full-service financial institution,” said PBB Chief Operating Officer Cynthia Almirez.

She bank added that “maintaining its core income, generating trading gains and fee income, and growing its PTPP and net income is a testament to PBB’S resiliency and discipline.”

On the balance sheet side, PBB’S loan portfolio grew 13.5 percent year-on-year as credit activity continued to gain momentum with the continued economic recovery and the resulting uptick in market demand for financing. (James A. Loyola)