Philippine Bank of Communications (PBCOM) managed a 3.7 percent improvement in net income to P1.63 billion last year from the P1.57 billion earned in 2021 despite challenging economic conditions. In a disclosure to the Philippine Stock Exchange, the bank said its full year result reflects its robust business model as growth in net interest income, fees and commissions and foreign exchange gains offset the impact of revenue headwind from trading activities. Net interest income reached P4.81 billion, up 13.3 percent versus prior year as interest earning assets grew 16.5 percent to P107.8 billion. This was largely funded by P58.2 billion in low-cost deposits, which comprises 58.5 percent of the bank’s total deposits. Net interest margin strengthened to 4.83 percent. PBCOM’s net loans portfolio registered an above industry growth of 18.74 percent, ending the year at P76.9 billion, while investment securities reached P21.7 billion, up 39.6 percent compared to prior year. Total assets stood at P124.9 billion. Non-performing loans (NPL) declined to 3.2 percent from 4.9 percent in 2021 whereas coverage for NPL improved to 110.7 percent from 80.0 percent as the Bank added provisions of P287.7 million for the year. The bank’s cost to income ratio, net of provision; improved to 56.0 percent from 57.7 percent despite additional spending on strategic initiatives in relation to business development and investments in information technology. The strong year-end performance improved capital base by 9.8 percent to P15.6 billion, while capital adequacy and CET 1 were at 17.1 percent and 14.6 percent respectively; all above the regulatory minimum for a Universal Bank. PBCOM commenced its operations as a Universal Bank last December 1, 2022, solidifying its strategy of delivering more value to its stakeholders through a more diversified business model and enhanced operability and governance.