Philippine Business Bank’s 2025 net profit up 6.4%
PHILIPPINE Business Bank, Inc. (PBB) saw its 2025 net profit climb by 6.4% on higher revenues and improved asset quality.
The bank’s net income went up to P1.896 billion last year from P1.782 billion in 2024, it said in a disclosure to the stock exchange on Wednesday.
This translated to a return on assets of 1.12% and a return on equity of 8.96%.
“This was achieved despite a challenging operating environment marked by weaker business sentiment, domestic issues that weighed on market confidence, and broader global uncertainties,” PBB Vice Chairman, President, and Chief Executive Officer Rolando R. Avante said.
Net interest income rose by 8.81% to P7.25 billion from P6.66 billion. This came as interest income increased by 7.59% to P11.44 billion from P10.63 billion, while interest expense went up by 5.55% to P4.19 billion from P3.97 billion.
As a result, its net interest margin improved to 4.5% last year from 4.3% in 2024.
Other income went up by 1.78% year on year to P1 billion from P849.16 million, driven mainly by a 65.35% jump in service charges, fees, and commissions to P508.3 million and trading gains worth P83.99 million.
Meanwhile, the bank’s other expenses increased by 12.18% to P4.71 billion last year from P4.16 billion a year earlier.
PBB’s net loans inched down by 0.48% to P127.66 billion from P128.27 billion as economic volatility weighed on the operating environment and as the bank “further enhanced its focus on credit and asset quality, deliberately directing efforts more towards margin expansion rather than asset-base expansion.”
As a result, PBB’s nonperforming loan ratio went down to 4.21% from 5.67%.
On the funding side, total deposits declined by 2.98% to P134.95 billion from P139.09 billion. Of the total, P64.4 billion were current account and savings account deposits, while P70.6 billion were time deposits.
This resulted in a loan-to-deposit ratio of 94.6% in 2025, up from 92.22% in the prior year.
PBB’s assets stood at P168.86 billion last year, up by 0.52% from P167.99 billion in 2024.
Total equity was at P21.17 billion, higher by 9.34% from P19.36 billion.
Its capital adequacy ratio was at 13.1%, while its liquidity ratio was at 24.1%.
Mr. Avante said they expect the operating environment to be challenging in the coming months as risks to elevated oil prices, global uncertainties, and still-fragile business sentiment continue which will weigh on economic activity.
“These conditions could place added pressure on borrowers and make competition across the banking sector even tighter. Even so, the bank remains confident in the strength of the client relationships it has built over the years and will continue to support both existing and prospective clients through a more responsive and hands-on approach to service, while further strengthening the tools, discipline, and capabilities needed to navigate the months ahead,” he said.
“PBB will likewise continue to prioritize profitability over balance sheet growth through a three-pronged strategy of strengthening client relationship depth and quality, enhancing operational capabilities and efficiency, and selectively growing its higher-margin business in chosen consumer loan segments. This strategy is expected to position the bank for sustainable growth and profitability in the periods ahead,” Mr. Avante added.
The bank’s shares rose by 10 centavos or 1.43% to close at P7.10 each on Wednesday. — Aaron Michael C. Sy
