PHILIPPINE Business Bank (PBB) saw its net income jump by 177.73% in the third quarter, driven mainly by trading gains.
The bank’s net earnings grew to P767.64 million in the third quarter from P276.4 million in the same period last year, its quarterly report disclosed to the stock exchange on Monday showed.
This brought its nine-month net profit to P1.8 billion, up by 57.09% from P1.146 billion in the same period last year.
This translated to an annualized return on equity of 12.7% and a return on assets of 1.5%.
“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. This growth was driven by the ability to capitalize on the high-interest rate environment, effective cost management, and a 50% growth of fee-based income,” PBB Vice Chairman, President and Chief Executive Officer Rolando R. Avante said.
“As PBB moves into the fourth quarter of 2024, it will remain well-positioned for sustained growth and profitability. It remains steadfast in its commitment to its clients by offering products that cater to their needs. These will ensure that the bank is ready to face future challenges while continuing to deliver value to its stakeholders,” Mr. Avante said.
The bank’s net interest income inched up to P1.59 billion in the third quarter from P1.58 billion in the same period last year.
This came as its interest income went up by 14.09% to P2.65 billion, while interest expenses surged by 43.37% to P1.06 billion from P737.26 million.
Net interest margin was at 4.34% at end-September, down from 4.63% at end-2023.
PBB’s other income stood at P720.75 million in the third quarter, a turnaround from the P35.45-million loss seen in the same period last year, driven by trading gains.
Other expenses stood rose by 16.49% to P1.09 billion as it set aside more loan loss provisions and amid increased spending on compensation and taxes, among others.
This resulted in a cost-to-income ratio of 53.14% at end-September.
PBB’s total loans and receivables went up by 13.1% year on year to P120.6 billion as of September.
Its nonperforming loan ratio was at 5.87% at end-September, up from 5.7% last year.
On the funding side, deposits stood at P131.9 billion.
As a result, the bank’s loan-to-deposit ratio stood at 91.43%.
PBB’s total resources went up by 15.1% year on year to P161.32 billion as of September.
Equity stood at P19.71 billion. Its capital adequacy ratio was at 12.92%, while its minimum liquidity ratio stood at 24.55%.
PBB’s shares closed at P9.07 apiece on Monday, down by 13 centavos or 1.41% from Friday’s finish. — A.M.C. Sy