Philippine Business Bank (PBB) said net profit fell in the third quarter after its trading account turned lossmaking in the period.

Net profit fell 44% year-on-year to P280.294 million in the three months to September, according to the bank’s financial report filed with the bourse Friday.

Nine-month net profit came to P804.329 million, down 38% from a year earlier.

The bank registered trading losses in the third quarter worth P40.713 million, reversing the P398.358 million in trading gains a year earlier

Return on equity came in at 7.61% while return on assets was 0.88% at the end of September.

Net interest income rose 1.4% year-on-year to P1.444 billion in the third quarter. The net interest margin fell to 4.78% at the end of September from 5% at the end of 2020.

Earnings from service charges, fees, and commissions also improved 26.6% year-on-year to P32.176 million in the third quarte.

Loan loss provisions dropped 37.5% year-on-year to P250 million.

Total loans were at P85.4 billion at the end of September. The non-performing loan ratio increased to 4.65% from 4.07% at the end of 2020.

Deposits amounted to P103.1 billion.

PBB’s capital adequacy ratio was 14.61% at the end of September, above the minimum regulatory requirement.

“Going forward, PBB continues to strengthen its balance sheet to meet the demands of the bank’s target market, upgrade its digital infrastructure to improve operational efficiency and customer experience, and develop new products and services for its clients,” PBB President and CEO Roland R. Avante said in a statement. – Luz Wendy T. Noble