Philippine Business Bank (PBB) reported a 59 percent fall in net income to P160 million in the first quarter of 2021 from the P394 earned in the same period last year due to mark-to-market trading losses.

However, in a disclosure to the Philippine Stock Exchange, the bank said its core income grew 4.6 percent to P725.2 million in the first three months of the year from P693.6 million in the comparative period of 2020.

PBB reported that its interest income dipped 2.9 percent to P1.58 billion in the first three months of 2021 while total loans and receivables reached P87.9 billion as of March 2021.

Total resources stood at P119.2 billion as of end-March 2021 from P110.6 billion in the same quarter last year.

On the funding side, deposit liabilities were at P99.9 billion as of March 2021. Low-cost deposits (CASA) grew 25.3 percent, while time deposits (TD) reached P46.7 billion.

“The trading activities this year was affected by inflation concerns that pushed yields higher both for peso and dollar denominated instruments,” said PBB Vice Chairman and President Roland Avante.

He added that, “As economic conditions stabilize in the next few quarters, the Bank’s profit levels should show an improvement.”

PBB continues to push cost efficiency and productivity resulting in operating expenses decreasing by 13.5 percent year-over-year (YoY) to P750.6 million. This reduction in operating expenses boosted core income to P725.2 million.

“The Bank’s relationship managers continue to monitor our loan portfolio and we will adjust our provisioning levels as needed,” Avante said.

He noted that, “The business environment continues to remain challenging given the effects of the pandemic. Nevertheless, PBB continues to strengthen its core business while managing its risk assets.”

“The Bank continues to regularly and closely monitor our asset quality, and our account management teams are working with our clients to ensure that we are able to provide assistance in this difficult time,” said Avante.