The Zest-O group’s newly listed thrift bank arm Philippine Business Bank posted P654 million in net profit last year, 12 percent lower than the previous year, due to narrower interest margins and some nonrecurring expenses.
Excluding one-time expenses booked in 2012, core net profit stood at P734 million, still lower than P746.97 million a year ago, PBB president Roland Avante said in an interview.
PBB’s nonrecurring expenses included fees paid for the increase in capitalization, and payment of special bonus and salary adjustments during the transition period before its stock market debut, he said.
Return on average equity was kept at 18 percent for 2012, higher than the average of most of its peers.
The bank grew its loan book by 25 percent to P20.9 billion but low interest rates gnawed at its margins, resulting in a slight decline in net interest income to P1.07 billion from P1.08 billion.
Non-interest income rose by 16 percent to P884 million as the bank posted P713 million in trading gains from treasury activities.
On the expenditure side, operating expenses went up to P1.17 billion from P952 million a year ago. Doris C. Dumlao