PBB net income down 10% in Q2

BW FILE PHOTO

PHILIPPINE Business Bank (PBB) recorded a lower net profit in the second quarter, it said on Friday.

The bank’s net earnings declined by 10% to P363.8 million from P400.4 million in the same period a year ago as net interest income stood at P1.374 billion, down 1.29% from P1.392 billion.

This brought its first semester net income to P524 million, 34% lower than the P794.87 million seen last year.

However, its core income in the period increased by 1.82% to P1.397 billion from P1.372 billion, which PBB attributed to the 53.9% decrease in its interest expense to P431.4 million.

“In the next two quarters, the bank will continue to strengthen its core business while managing its risk assets and servicing the needs of its key clientele — the small and medium enterprises,” PBB President and CEO Roland R. Avante was quoted as saying.

The bank’s loans and receivables rose 4.2% to P87.9 billion as of June from P84.346 billion a year earlier.

On the funding side, PBB’s deposit liabilities stood at P102.9 billion, also up by 8.25% against the P95.053 billion seen at end-June 2020. Current account, savings account (CASA) deposits rose 41%, while time deposits reached P45.3 billion, PBB said. Its portfolio’s mix improved to 56:44 in favor of CASA deposits from 43:57 a year ago.

Meanwhile, the bank’s assets reached P122.7 billion as of June, rising by 6.8% from P114.848 billion a year earlier.

Its capital adequacy ratio stood at 14.41% at end-June, well above the regulatory requirement.

PBB’s shares closed at P10.32 apiece on Friday, down by two centavos or by 0.19% from its previous finish. — LWTN

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