Zest-O group-led Philippine Business Bank grew its net profit in the first nine months by 67.9 percent year-on-year to P1.02 billion on higher interest earnings and Treasury gains as well as one-time gains from the consolidation of Insular Savers Bank Inc. (ISB).
This profit level was attained with the continued expansion of the bank’s core business, PBB president Roland Avante said in a disclosure to the Philippine Stock Exchange.
“The bank’s interest differential business showed robust profitability as interest rates continued to stabilize. PBB was also able to capitalize on a favorable Treasury trading environment,” Avante said.
“The bank expects to see sustained earnings growth as 2019 comes to a close,” he added.
PBB’s net interest income expanded by 18 percent year-on-year to P3.22 billion. Net interest margin was at 4.33 percent in September.
Core revenue—referring to total revenue less trading gains or losses—increased by 24.1 percent to P1.33 billion.
The bank expanded its loan book by 5 percent year-on-year to P84.3 billion at end-September.
Total resources increased by P12.3 billion, reaching P108.6 billion.
“While our profits in the last nine months are supplemented by a one-time gain on the consolidation of ISB, the strong interest differential business the bank has been developing continuous to drive our profit numbers. Over the last five years, we have grown our assets by 15.3 percent and our net book value per share by 10.6 percent,” Avante said.
On the funding side, the bank’s low-cost funds expanded by 27 percent, ending the first nine months at P37.8 billion versus last year’s P29.8 billion.
Total deposits rose by 11 percent to P88.5 billion during the period.
Shareholder’s equity was at P12.7 billion, equivalent to a book value per share of P18.74 net of preferred shares. The nine-month performance brought the return on average equity to 11.36 percent and return on average assets at 1.34 percent.
The bank recently issued a three-year, P3-billion note as part of its P10.0 billion debt capital program.
“The bank’s branch expansion will continue as we enlarge our nationwide distribution footprint. The branches will continue to serve as the bank’s main touchpoint to deliver our products and services. The bank’s continuing upskilling of its account management culture should assist in increasing our fee-based income. We also remain opportunistic with regard to the bank’s inorganic growth initiatives,” explained Avante. —DORIS DUMLAO-ABADILLA