Philippine Business Bank (PBB) posted record-high earnings in the first nine months of the year as its loan portfolio expanded alongside the growth of the consumer business.
In a stock exchange filing on Monday, the banking business of Zest-O Group founder Alfredo Yao said its net income surged by 57 percent to P1.8 billion, which is equivalent to PBB’s full-year 2023 earnings.
Core income was at P2.4 billion, up by 8.7 percent.
READ: PBB profit grew 39% in 2023
Meanwhile, net interest income jumped by 16 percent to P7.83 billion as the bank favored the high-yielding consumer business while continuing support for small- and medium-sized enterprises.
“This growth was driven by the ability to capitalize on the high-interest rate environment, effective cost management, and a 50-percent growth of fee-based income,” PBB vice chair, president and CEO Rolando Avante said in a statement.
Total loans and receivables grew by 13.1 percent to P120.6 billion.
Other income likewise soared by 50.4 percent to P635.9 million on higher foreign exchange gains and service fees.
Operating expenses inched up by 7.3 percent to P3.18 billion as total salaries and employee benefits rose.
The bank’s financial performance resulted in an annualized return on equity of 12.72 percent from 11.19 percent previously, its filing showed.
In the third quarter alone, net income ballooned by 177.7 percent to P767.6 million on higher trading gains.
As of end-September, PBB’s total assets reached P161.3 billion.
“As PBB moves into the fourth quarter of 2024, it will remain well-positioned for sustained growth and profitability,” Avante said, adding: “These will ensure that the bank is ready to face future challenges while continuing to deliver value to its stakeholders.”
In April, PBB said it had planned to secure a universal banking license this year as earnings improved.
This license would allow PBB to widen its service offering to include investment banking, insurance and trust services. —Meg J. Adonis INQ