PHILIPPINE BUSINESS BANK, Inc. (PBB) saw its net income rise by 15.36% year on year to P590.02 million in the first quarter.
This translated to a return on equity of 12.08% and a return on assets of 1.45%, PBB said in a disclosure to the stock exchange on Wednesday.
“The bank’s marketing efforts continued to focus on high-quality accounts, particularly existing clients and borrowers with a track record of sustainable earnings, and our rapidly growing teacher’s loans business. Strengthened collection policies, restructuring programs, and the usual focus on deepening relationships with our SME (small and medium enterprises) clients continue to be our primary objectives,” PBB President, Chief Executive Officer and Vice Chairman Rolando R. Avante said.
“PBB remains committed to its long-term strategic direction, continuously strengthening its services, investing in new technology and capabilities, and leveraging its extensive network to better serve clients and drive growth,” he said.
The bank’s net interest income rose by 12.38% to P1.83 billion last quarter from P1.62 billion a year prior. Interest income increased by 14.2% to P2.88 billion, while interest expenses climbed by 17.51% to P1.05 billion.
Net interest margin stood at 4.77% in the first quarter, up from 4.28% last year.
“Amidst the challenging business climate driven by the global economic tensions, the bank maintained healthy interest margins,” Mr. Avante said.
Other income likewise climbed by 48.46% to P234.58 million.
Meanwhile, other expenses rose by 9.39% year on year to P1.15 billion in the first quarter. This resulted in a cost-to-income ratio of 55.9% as of March, up from 54.83% at end-2024.
“Taking a proactive risk mitigation stance, PBB accelerated its provisioning strategy by setting aside P175 million in loan loss provisions in the first quarter of 2025, more than triple the P50 million recorded in the same period last year,” Mr. Avante said.
PBB’s loans and receivables stood at P122.8 billion at end-March. The bank’s nonperforming loan ratio was at 5.61%.
On the funding side, total deposits stood at P131.01 billion.
This resulted in a loans-to-deposit ratio of 93.74%.
PBB’s total resources stood at P160.79 billion as of March, while total equity was at P20.08 billion.
Its capital adequacy ratio was at 13%, its common equity Tier 1 ratio was at 13%, and its minimum liquidity ratio was at 23.8%.
PBB’s shares closed unchanged at P8.14 apiece on Wednesday. — A.M.C. Sy
