Philippine Business Bank’s Net Income Grows 93.4% To ₱310.0M, Core Income At ₱732.3M

Philippine Business Bank (PSE: PBB) reported a net interest income of ₱1,295.5 million in the first three months of 2022.

Photo Insert: PBB's Q1 2022 results were solid.

Core income grew to ₱732.3 million from ₱725.2 million. Pre-tax pre-provision profit was at ₱582.9 million from ₱394.2 million an increase of 47.9% versus the same period last year. Net income reached ₱310.0 million, up 93.4% year-over-year (“YoY”).

Total loans and receivables reached ₱89.4 billion as of 1Q22. Total resources stood at ₱131.1 billion as of end-March 2022 from ₱119.2 billion in the same quarter last year. On the funding side, deposit liabilities were at ₱111.3 billion as of 1Q2022, an 11.4% increase from March 2021’s ₱99.9 billion.

Low-cost deposits (“CASA”) grew 30.9% versus 1Q2021, while time deposits (“TD”) reached ₱41.7 billion. Management of the Bank’s deposit portfolio improved the deposit mix from 53:47 in 1Q21 to 63:37 in 1Q22 CASA to TD ratio.

Shareholders’ equity was at ₱14.1 billion, equivalent to a book value per share of ₱20.97 net of preferred shares. Returns on assets and equity improved to 0.95% and 8.78% owing to net income growth.

The Bank’s capital adequacy ratio was 14.20% and minimum liquidity ratio at 30.72% in the first quarter of 2022, above the adjusted statutory requirement of 16.0% (from 20.0%).

“PBB achieved solid first-quarter results with net income growing 93.4% YoY, earning ₱310.0 million. The Bank’s fee-based income also grew by 195.7% to ₱327.6 million as the Bank focused on improving its account management practices. As a result, core income reached ₱732.3 million," said Roland Avante, Vice Chairman, President, and CEO of Philippine Business Bank.

"The Bank’s 2021 operating expenses were within the expected levels and 2022 expense growth is attributable to business improvements. For the rest of the year, we are seeing strong loan growth and persistent demand from our clients for their funding needs. As the economic conditions improve, we are expecting to sustain a healthy expansion of risk assets to continue into the latter half of the year. We have previously expressed our goal of raising growth capital to further support the continued development of the Bank’s businesses and expand its business initiatives. A bigger capital base will help the Bank capitalize on opportunities we are seeing from our deal pipeline," he added.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic