Publicly listed Philippine Business Bank (PBB) hopes to open its 100th branch in the country this year to expand its network as it works on getting a universal/commercial banking license.
At its annual shareholders’ meeting on Friday, the lender, owned by the group of Zest-O founder Alfred M. Yao, also said it was expecting profit to grow at a faster pace this year, supported by the country’s economic expansion.
“In the first quarter, (profits) exceeded expectations,” said Yao, the company’s chair. He added that sustaining the rate of expansion of the company’s bottom line the rest of the year was highly likely.
His confidence remains high despite the low-interest rate environment, which means banks make less money for every peso they lend. Today, 65 percent of the bank’s loans are to small companies.
In the first quarter, PBB’s net income rose by 34.1 percent, a reversal of the 12 percent profit drop in 2012.
He said the bank would work to expand its consumer lending base, where interest rates—and as a result, margins—were higher.
In the meantime, PBB CEO Rolando Avante said the company would open a total of 22 new bank branches before the end of the year. This would bring PBB’s branch network to 100.
“We will always be focused on serving our main market of small-to-medium enterprises,” Avante told PBB shareholders at the meeting.
Avante said the company was also on the lookout for smaller banks it could acquire to increase PBB’s reach, widen its deposit base and grow the number of its customers. Paolo G. Montecillo