PHILIPPINE Veterans Bank (PVB) saw “strong” net earnings in the third quarter at P505.6 million, driven by higher loan growth.
In a statement on Thursday, the bank said its net income in the period was a reversal from the P735 million net loss it logged in the third quarter last year and also from the net loss of P574 million in 2018.
Last quarter’s record already surpassed its P500-million target for 2019, translating to a 28.44% return on equity (RoE), it said.
The bank said its current RoE is considered as “one of the highest in the banking industry.”
“The robust net income results were driven mostly by the bank’s lending business from both corporate and retail loans,” it said.
The lender reported a net loan growth of 13.54% to P21.29 billion in the third quarter from the P18.75 billion it posted a year earlier.
“Now that many of these reforms are in place, the bank has directed its efforts on business development, enhancing and developing new products and services. The third quarter results show not only a significant rise in net income but the highest levels in deposits and loans ever for the bank,” PVB Chairman Roberto F. de Ocampo said in the statement.
Meanwhile, its deposits grew 11% year-on-year to P50.78 billion from P45.4 billion.
The bank also posted a 12.3% growth in assets to P57.03 billion last quarter from P50.78 billion in the third quarter last year.
Currently, its capital adequacy ratio stands at 10.63%
“This year’s unprecedented growth levels show that all the hard work and sacrifice were worth it. Our primary mission is to give value to our shareholders — the families of Filipino WWII veterans. And the best way to give value is to deliver above market RoE,” Renato A. Claravall, the bank’s president, was quoted as saying. — B.M. Laforga