PBB posts higher net profit in 2022

PHILIPPINE Business Bank, Inc. (PBB) saw its net income rise by 12.3% last year on the back of an improved loan portfolio amid the economy’s reopening.

PBB’s net profit stood at P1.311 billion last year, rising from the P1.168 billion seen in 2021, the lender said in a disclosure to the local bourse on Monday.

This translated to a return on average equity of 9% and a return on average assets of 0.97%.

The bank’s financial statement was unavailable as of press time.

“Fourth-quarter net income was P384.9 million by 25.7% against its third-quarter net income of P306.3 million,” PBB Chief Operating Officer Cynthia A. Almirez said.

The bank’s net interest income stood at P5.547 billion last year.

Net interest margin was at 4.33%.

Meanwhile, net loans and receivables rose by 12.9% to P103.5 billion from P91.7 billion in 2021.

“On the balance sheet side, PBB’s loan portfolio grew 12.9% year on year as credit activity began to gain momentum with the continued economic recovery and the resulting uptick in market demand for financing,” Ms. Almirez said.

On the funding side, deposit liabilities were at P114.5 billion in 2022. Low-cost current and savings account deposits stood at P62 billion, while time deposits reached P52.5 billion.

Shareholders’ equity was at P14.6 billion.

PBB’s capital adequacy ratio stood at 13.85% last year, while its minimum liquidity ratio was at 21.75%.

Ms. Almirez said the P1.75 billion in proceeds from PBB’s stock rights offering in the first quarter increased the bank’s capital and enhanced its ability to expand its loan and investment securities portfolio.

“This will further improve profitability in 2023,” she added.

The bank’s total assets stood at P134.6 billion at end-2022.

PBB has 157 branches nationwide.

Its shares closed unchanged at P8.12 apiece on Monday. — AMCS