Philippine Business Bank (PBB), a local lender controlled by beverages tycoon Alfredo Yao, reported that its net income leaped 57.1 percent to P1.8 billion in the first nine months of 2024 from the P1.15 billion it earned in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), the bank posted an interest income of P7.83 billion in the first nine months of 2024, a 16.1 percent increase year-on-year (YoY).
Core income reached P2.4 billion and profit before tax was at P2.25 billion.
“The bank’s financials showed remarkable performance and growth in the first nine-months of 2024 earning P1.8 billion net income, an accomplishment that took PBB the full year to reach in 2023,” said PBB Vice Chairman, President, and CEO Rolando Avante.
He added that “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.”
The bank also generated trading gains of ₱402 million further boosting net income despite economic volatility.
Despite the challenges of acquiring low-cost funding in an elevated interest rate environment, the bank successfully increased its net interest income.
Avante said “this growth was driven by a 16.1 percent increase in interest income, attributed to the Bank's strategic focus on expanding its high- yielding consumer business, and the continued support of the SME sector."
“This demonstrates the Bank’s resilience and adaptability, enabling it to deliver strong financial performance amidst high interest rate pressures and ensure continued profitability and stable growth,” he added.
Meanwhile, he noted that “as PBB moves into the fourth quarter of 2024, it will remain well-positioned for sustained growth and profitability.”
Total loans and receivables reached P120.6 billion as of the first nine months of 2024, up 13.1 percent YoY. Total resources stood at P161.3 billion as of end-September 2024 while, on the funding side, deposit liabilities were at P131.9 billion.
Shareholders’ equity was at P19.7 billion, equivalent to a book value per share of P23.31 net of preferred shares. Annualized returns on assets and equity improved to 1.49 percent and 12.18 percent.
The bank’s capital adequacy ratio was 12.92 percent and minimum liquidity ratio at 24.55 percent at the end of the first half of 2024, above the adjusted statutory requirement of 10 percent and 20 percent, respectively.