PBB grows Q1 net profit by 38.5%

Yao group-led Philippine Business Bank grew its net profit in the first quarter by 38.5 percent year-on-year to P251 million on higher interest earnings and treasury gains.

Net interest income expanded by 8.1 percent to P950.1 million, the bank disclosed to the Philippine Stock Exchange on Friday.

“PBB showed healthy revenue and net income growth rates owing to the strong performance of both the bank’s lending and treasury businesses,” said Roland Avante, PBB president and chief executive.

The P251-million net profit in the first three months was the biggest first-quarter income posted by PBB in the last six years as earnings from core lending activities and trading expanded at a double-digit pace, Avante added.

The first-quarter performance translated to a return on equity of 8.84 percent and return on assets of 1.06 percent for PBB.

Excluding non-recurring items, first quarter core income grew by 10 percent year-on-year to P329.1 million, he said.

Total loans and receivables rose by 4 percent year-on-year to P76.8 billion in the first quarter while total resources ended the period at P94.7 billion, increasing by 7.1 percent from a year ago.

On the funding side, PBB’s low-cost funds expanded by 8.6 percent year-on-year to P31.9 billion. Time deposits, on the other hand, grew by P2.2 billion to P46.8 billion over the same period. As a result, total deposits ended at P78.7 billion, up by 6.3 percent year-on-year.

PBB’s net interest margin stood at 4.15 percent in the first quarter.

Shareholder’s equity stood at P11.4 billion, equivalent to a book value per share of P16.69, net of preferred shares.

PBB currently has 157 branches located in key areas across the country. —DORIS DUMLAO-ABADILLA