PBB posts higher profit

PHILIPPINE Business Bank (PBB) booked a higher net profit in the second quarter, boosted by its lending and trading businesses.

In a regulatory filing Thursday, the Yao-led bank said it booked a P327.9-million net income in the three months ended June, up 96.5% from P166.9 million last year.

“PBB continues to show promising growth this year as the Bank continued to improve its lending business while taking advantage of trading opportunities,” Rolando R. Avante, PBB president and chief executive officer, was quoted as saying in the disclosure.

The bank’s net interest income grew 8.8% to P998.8 million, coming from P918.3 million last year. Overall income grew 30% year-on-year largely due to the P340.1 million increase in interest income on ,loans and other receivables brought by growth of loan volume and attractive lending rates.

PBB’s lending book stood at P80.7 billion at the end of the second quarter, up P3.2 billion from P77.5 billion in the same period last year.

Its non-performing loans ratio climbed by 51 basis points to 2.26% as of end-June from 1.75% at end-2018.

On the other hand, total deposits were at P84.3 billion, up from P79.1 billion last year, with low-cost funds expanding by 17.2% to end June at P35.4 billion versus last year’s P30.2 billion.

Other income stood at P84.5 million as of the second quarter, 3.3% higher than the same period last year.

Non-interest expenses grew 10.2% to P727.4 million from P660.1 million as salaries and other employee benefits expanded by P39.7 million.

Overall, PBB’s assets stood at P100.5 billion, up from P93 billion last year.

Total equity grew 15% to P12.1 billion from P10.5 billion last year.

“Philippine Business Bank and Insular Savers Bank finally merged, with Philippine Business Bank as the surviving entity,” Mr. Avante said.

The merger between the banks is expected to further strengthen PBB’s consumer lending business while establishing a foothold in the microfinance market. The Yao-led bank said previously its acquisition of ISBI will add approximately 10% to its bottomline.

“Our consumer business will continue to form part of the Bank’s continuing approach to position its balance sheet strategically towards underserved segments of the market,” Mr. Avante added.

Earlier this week, the thrift lender raised P3 billion in fresh funds via a corporate note issuance to support its consumer loan business. The issuance marks the maiden tranche of PBB’s P10-billion debt program approved by its board of directors in March. — K.A.N. Vidal