PBCom net income surges in Q3
PHILIPPINE BANK of Communications (PBCom) saw its net income jump by 128.96% year on year in the third quarter on the back of higher revenues.
The bank’s net income stood at P821.2 million in the three months ended September, rising from P358.66 million in the same period last year, its financial statement disclosed to the stock exchange on Wednesday showed.
This brought its nine-month net profit to P1.85 billion, up by 36.02% from P1.36 billion a year ago.
The lender’s end-September performance translated to a return on average equity of 13.27% and a return on average asset of 1.61%, up from last year’s 11.22% and 1.36%, respectively.
PBCom’s net interest income rose by 14.53% to P1.34 billion in the third quarter from P1.17 billion in the same period last year as the bank continued to benefit from the high interest rate environment.
Interest income went up by 17.22% to P2.45 billion from P2.09 billion, driven mainly by higher interest earnings from loans and receivables, while interest expenses were at P1.11 billion in the third quarter, rising from P922.66 million a year prior.
Net interest margin stood at 3.92% at end-September, lower than 3.98% at end-2023.
The bank’s total operating income surged by 50.71% to P2.11 billion in the third quarter from P1.4 billion a year ago as it booked higher trading gains and income from service charges, fees and commissions, among others.
Meanwhile, PBCom’s operating expenses increased by 24.25% to P1.11 billion from P893.39 million amid higher volume-driven costs.
The bank’s total loans stood at P92.33 billion in the first nine months, up by 0.61% from P91.77 billion at end-2023.
“The bank’s gross NPL (nonperforming loan) ratio was at 3.38%, 61 basis points higher than the 2.77% ratio at the end of 2023,” PBCom said.
On the funding side, total deposits went up by 3.31% to P120.56 billion as of September from P116.7 billion at end-2023.
“This resulted mostly from P5-billion increase in bills payable and P3.9-billion increase in deposit liabilities, mainly from higher time deposits, partially offset by maturity of the bank’s LTNCD (long-term negotiable certificates of deposit) in the second quarter and lower savings and demand deposits,” PBCom said.
The bank’s assets grew to P158.39 billion as of September from P147.48 billion at end-2023.
Total equity likewise increased to P19.53 billion from P17.66 billion.
PBCom’s capital adequacy ratio was at 17.07% at end-September, inching down from 17.17% in the same period last year.
Its liquidity ratio was at 26.77% in the first nine months, up from 19.69% at end-2023.
PBCom shares closed unchanged at P16.30 apiece on Wednesday. — A.M.C. Sy
