PBB earnings go up in first nine months
PHILIPPINE Business Bank’s (PBB) net income rose in the first nine months of the year on the back of the expansion of its core businesses, it reported yesterday.
The Yao-led bank’s net earnings jumped by 67.9% to P1.024 billion from January to September against the P610.2 million it recorded during the same period last year, it said in a disclosure to the local bourse on Monday. It did not provide third-quarter financial results.
PBB President and CEO Rolando R. Avante attributed the increase in the bank’s profit to the one-time gain from its consolidation with Insular Savers Bank (ISB) this year as well as the “favorable” market conditions.
“The bank’s interest differential business showed robust profitability as interest rates continued to stabilize. PBB was also able to capitalize on a favorable treasury trading environment,” Mr. Avante was quoted as saying.
As of September, PBB’s net interest income increased 18% to P3.22 billion from P2.73 billion in the same period in 2018.
Total loans and receivables inched up by 4.98% to P84.3 billion from the P80.3 billion during the same period last year.
PBB’s total deposits stood at P88.5 billion, P8.8 billion higher from a year ago, while its low-cost funds grew by 27% to P37.8 billion from last year’s P29.8 billion.
Its core income also went up 24.1% to P1.334 billion from P1.075 billion a year earlier.
The bank’s total resources stood at P108.6 billion at end-September, increasing by P12.3 billion from the year-ago figure.
Meanwhile, shareholder’s equity stood at P12.7 billion with a book value per share of P18.75 net of preferred shares.
Its annualized return on average equity and return on average assets stood at 11.36% and 1.34%, respectively.
“While our profits in the last nine months are supplemented by a one-time gain on the consolidation of ISB, the strong interest differential business the Bank has been developing continuous to drive our profit numbers. Over the last five years, we have grown our assets by 15.3% and our net book value per share by 10.6%,” Mr. Avante said.
“The bank’s branch expansion will continue as we enlarge our nationwide distribution footprint. The bank’s continuing upskilling of its account management culture should assist in increasing our fee-based income. We also remain opportunistic with regard to the bank’s inorganic growth initiatives,” he added.
PBB shares closed at P12.70 apiece on Monday, down 0.78% or 10 centavos. — B.M. Laforga
