PBB nets P1.82 billion in 2023

MANILA, Philippines — Philippine Business Bank (PBB) posted a net income of P1.82 billion in 2023, up 39.1 percent or P513 million from the P1.31 billion recorded in 2022, the bank said in a disclosure to the Philippine Stock Exchange.

This was mainly driven by strong asset expansion, better interest rate margins and lower cost-to-income ratios.

“PBB’s outstanding performance in 2023 was driven by the bank’s asset expansion, improved interest rate margins and lower cost-to-income ratio,” Cynthia Almirez, chief operating officer of PBB, said.

“The bank’s performance despite the stiff competition in the industry is indicative of PBB’s expansion as a full-service financial institution,” she added.

Based on its financial report, the bank’s net interest income rose by 15.8 percent to P6.42 billion as its interest income from loans and other receivables surged by 41.3 percent to P9.3 billion.

The lender’s net interest margin also grew by 30 basis points to 4.63 percent in 2023 from 4.33 percent in 2022.

Core income inched up by 0.6 percent to P3.1 billion from P3.08 billion over the same period last year. Core income includes the bank’s earnings from service charges, fees, commissions and miscellaneous income.

PBB’s total resources amounted to P154.4 billion in 2023, 14.8 percent higher versus P134.5 billion a year ago. This, as loans and receivables expanded by 13.5 percent to P117.6 billion from P103.5 billion previously.

On the balance sheet side, PBB’s loan portfolio rose by 13.5 percent amid continued growth in credit activity due to the sustained recovery of the economy and the uptick in market demand for financing.

The bank also said it has maintained its non-performing loans (NPLs) within “reasonable bounds.” Its NPL ratio picked up at 5.7 percent in 2023, up from 5.37 percent a year ago.

PBB’s capital adequacy ratio was at 13.1 percent last year, while its minimum liquidity ratio stood at 25.8 percent. Both are above the central bank’s requirement of 10 and 20 percent, respectively.

Its return on average equity reached 10.13 percent and its return on average assets hit 1.18 percent in 2023.

According to Almirez, maintaining the bank’s core income, generating trading gains and fee income as well as growing its overall net profit reflect PBB’s resiliency and discipline.