PBB books higher net income

PHILIPPINE BUSINESS Bank, Inc. (PBB) saw its net income rise by 39.08% in 2023 as it continued to benefit from a high interest rate environment.

The bank’s net profit stood at P1.82 billion in 2023, up from P1.31 billion in 2022, its financial statement disclosed to the stock exchange on Monday showed.

“PBB’s outstanding performance in 2023 was driven by the bank’s asset expansion, improved interest rate margins, and lower cost-to-income ratio,” PBB Chief Operating Officer Cynthia A. Almirez said in a statement.

This translated to a return on equity of 11.19% and a return on assets of 1.26%, up from 9.03% and 0.98%, respectively.

The lender’s net interest income stood at P6.42 billion in 2023, up by 15.76% from P5.55 billion a year prior.

As a result, PBB’s net interest margin improved to 4.63% from 4.33%.

Other income likewise rose by 3.63% to P980.55 million from P946.19 million driven by trading gains and fee income.

Meanwhile, expenses grew by 5.21% to P4.01 billion from P3.81 billion.

The bank’s net loans grew by 13.54% to P117.56 billion in 2023 from P103.54 billion in 2022 as it saw increased demand for financing amid the economy’s continued recovery, PBB said.

PBB’s non-performing loan ratio went up to 5.7% from 5.37%.

On the funding side, total deposits grew by 10.65% to P126.72 billion from P114.53 billion. Low-cost current account savings account deposits ended at P68.3 billion, while time deposits reached P58.4 billion.

PBB’s total assets stood at P154.41 billion at end-2023, up by 14.76% from P134.55 billion.

Total equity was at P18.01 billion, up by 23.59% from P14.58 billion.

The bank’s capital adequacy ratio was at 13.15%, down from 13.85%. Its minimum liquidity ratio was at 25.83%, up from 21.75%.

PBB’s shares rose by 20 centavos or 2.30% to end at P8.90 apiece on Monday. — A.M.C. Sy