MANILA, Philippines - Philippine Business Bank (PBB) recorded a 16.2 percent rise in earnings on the back of higher interest and non-interest income in the first half of the year.
In a disclosure to the Philippine Stock Exchange (PSE), PBB booked a net income of P300.24 million from January to June this year, P41.91 million higher than last year’s P258.33 million.
Data showed interest income from loans and other receivables as well as investment and trading securities surged 15.8 percent to P1.56 billion in the first half of the year from P1.35 billion in the same period last year.
Interest expense for deposit liabilities and bills payable rose 27.6 percent to P355.5 million from P278.6 million, resulting in a 13.1 percent increase in net interest income to P1.21 billion from P1.07 billion.
Non-interest income including trading gains, service charges as well as fees and commissions surged 126 percent to P119.71 million from P52.87 million.
The bank booked a trading gain of P48.22 million in the first half of the year, reversing the P10.2 million losses registered in the same period last year.
PBB president and CEO Roland Avante said the bank’s treasury business remains a key contributor to its bottom line.
Avante pointed out the maturation of the net interest differential business has been a key cornerstone of the PBB’s strategy.
He explained about 90 percent of the bank’s pre-tax pre-provision profits now come from core deposit and lending business compared to 2012 when 90 percent was accounted for by its treasury business.
“The treasury business, while no longer the centerpiece of PBB’s profitability, will always play a pivotal role in the bank’s business operations. We will be opportunistic in our trading activities,” he said.
PBB including recently acquired Insular Savers Bank has 134 branches nationwide after opening 10 more branches in the first half of the year. Loans extended by branches ballooned to P15 billion compared to only P2 billion in 2011.
Avante said the bank’s loan books have expanded by 26 percent while its branch lending business jumped 60 percent.
“The branch expansion program plays a central role in the growth of PBB as it allows us to reach our customers and establish business in new frontiers. The branch expansion clearly demonstrates its value,” he added.