The Philippine Business Bank (PBB) reported a 23.6 percent rise in its net income to P1.1 billion in the first nine months of 2023 compared to P926 million in the same period in 2022, attributed to its balance sheet expansion and better operating efficiency.

The bank noted a strong performance in its income generation, with net interest income increasing by 18 percent to P4.7 billion following a 46 basis points increase in net interest margin to 4.79 percent.

Core income reached P2.2 billion for this year’s nine-month period, while pretax pre-provision profit inched up by 13.3 percent to P1.8 billion this year from P1.2 billion last year.

The bank’s total resources also increased by 12.1 percent to P140 billion in the nine-month period this year from P125 billion last year, according to a disclosure to the Philippine Stock Exchange (PSE).

Its loans and other receivables were also recorded at P106 billion this year, an 8.1 percent increase from P98 billion recorded in 2022.

PBB’s total deposits grew by 10 percent to P116 billion in the first nine months this year from P105 billion last year, along with total equity which rose by 21.2 percent at P17 billion this year from P14 billion in 2022.

The bank recorded a 41.8 percent cost-to-income ratio for the nine month period in 2023, which is significantly lower than 51.8 percent in 2022. It highlighted that its 40 percent revenue growth “outpaced the 13.3 percent increase in its operating expenses” to “achieve cost efficiency and productivity.”

In a statement, the bank said it will “continue to strengthen its core business while managing its risk assets.”

“The Bank recognizes the crucial role that the financial services industry plays in supporting the continued recovery of the Philippine economy. PBB looks forward to working together with its clients, shareholders, and employees in making PBB the bank of choice of SMEs,” it stated.