Tycoon Lucio Co-led Philippine Bank of Communications booked a net profit of P400.1 million last year, almost double the figure posted a year ago, on higher interest earnings and trading gains.
The parent bank grew its net profit to P350.1 million from P132.1 million in 2015, cushioning the decline in the earnings of its subsidiaries, the bank told the Philippine Stock Exchange yesterday.
PBCOM spent 2016 strengthening its growth pillars in the areas of people, products, processes, place and partnerships, following a move in 2015 to lay the foundation for sustained growth.
Bank president Patricia May Siy said: “The rebuilding continues, paving the way for the bank to deliver its optimum returns to its stakeholder.”
The increased profitability was attributed to a combination of growth in revenue as driven by improvements in its core business and prudent cost management.
PBCOM reported that last year’s earnings growth was driven by the 28-percent expansion of its loan book to P44.3 billion, with focus on secured consumer loans as well as bankable large and middle market corporate accounts.
The bank provided credits worth P9.6 billion to its clients during the year, resulting in an 11.61-percent increase in net interest income.
Income from trading and investment securities also rose by 7.48 percent, attributed by the bank to better market conditions and portfolio mix. Foreign exchange gains likewise improved by 12.49 percent while rental income also went up.
The bank, however, saw a lower fair value gain on investment properties and lower profit from assets sold and trust operations. Thus, total operating income dropped by 4.32 percent.
Backed by very stable and supportive shareholders, able and cohesive management team, investments in infrastructure, PBCOM seeks to become a significant player in the Philippine banking industry.