PHILIPPINE Business Bank’s (PBB) net income rose by 4.63% to P511.47 million in the first quarter, driven by robust interest income.

Return on assets and return on equity stood at 1.35% and 11.23%, according to a copy of its financial statement. Net interest income rose by 1.63% to P1.62 billion, while net interest margin was at 4.48%.

The bank’s core income hit P782.5 million, and profit before tax was P679.8 million, PBB said in a separate statement.

“The bank’s fee-based income growth of 62.4% played a significant role in boosting PBB’s overall revenue,” PBB Chief Operating Officer Cynthia A. Almirez said. “Fee-based income encompasses revenue streams independent of traditional interest-based transactions, offering stability and predictability amidst volatile interest rates.”

This helps PBB from the volatility inherent in interest income, enhancing the bank’s resilience in navigating economic uncertainties, she added.

Total equity rose by 2.23% to P18.42 billion, equivalent to a book value per share of P21.74 net of preferred shares, PBB said.

“This year marks a pivotal milestone in the bank’s journey as it aims to end the year with an equity of P20 billion, bringing it a step closer to securing its universal banking license,” Ms. Almirez said.

Acquiring a universal banking license will let PBB offer investment banking, wealth management and bancassurance, which is expected to boost revenue and market presence.

It can also offer more attractive returns to its investors through cash dividends. The bank’s capital adequacy ratio was 13.16%. 

PBB’s other income dropped by 33.72% to P158.01 million from a year earlier due to trading losses. Other expenses went up by 4.26% to P1.05 billion. As a result, its cost-to-income ratio stood at 59.06%

Net loans and receivables declined by 4.65% to P112.09 billion at end-March from end-2023. Its bad loan ratio stood at 4.97%.

PBB’s deposit liabilities fell by 5.78% to P119.39 billion, while its loan-to-deposit ratio was at 93.89%. Total resources also fell by 4.29% to P147.79 billion.

PBB’s shares were unchanged at P8.96 each. — Aaron Michael C. Sy

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