Philippine Business Bank’s net income grew 18.4% to ₱620.3 million Core income at ₱1,383.8 million
Profitability continues to improve following 2021 performance:
- Net interest income ended at ₱2,496.2 million in the first half of 2022
- Core income1 reached ₱1,383.8 million
- Pre-tax pre-provision profit2 rose to ₱1,179.2 million in the first six months of 2022 from ₱1,161.2 million in 1H2021
- Profit before tax increased by 12.2% to ₱854.2 million in the first half of 2022
- Net income ended at ₱620.3 million in 1H22 against ₱524.0 million in 1H21
Funding growth stability expected to be maintained:
- Total resources stood at ₱124.1 billion from ₱122.7 billion in 1H21
- Loans and other receivables at ₱97.2 billion versus same period last year’s ₱87.9 billion, up 10.6% year-over-year (“YoY”)
- Total deposits reached ₱104.9 billion from ₱102.9 billion in 6M21
- Total equity at ₱13.6 billion
Philippine Business Bank (PSE: PBB) reported net interest income of ₱2,496.2 million in the first six months of 2022. Core income reached ₱1,383.8 million. Pre-tax preprovision profit was at ₱1,179.2 million from ₱1,161.2 million versus the same period last year. Net income reached ₱620.3 million, up 18.4% YoY.
Total resources totaled ₱124.1 billion as of 1H22. Total loans and receivables stood at ₱97.2 billion as of end-June 2022 from ₱87.9 billion in the same period last year, up 10.6% YoY. On the funding side, deposit liabilities were at ₱104.9 billion as of 1H2022 from June 2021’s ₱102.9 billion. Low-cost deposits (“CASA”) grew 6.1% versus 1H2021, while time deposits (“TD”) reached ₱43.8 billion. The Bank’s CASA to TD ratio improved from 56:44 in 1H21 to 58:42 in 1H22.
Shareholders’ equity was at ₱13.6 billion, equivalent to a book value per share of ₱20.12 net of preferred shares. Returns on assets and equity improved to 1.00% and 9.14% owing to net income growth. The Bank’s capital adequacy ratio (“CAR”) was 13.45% and minimum liquidity ratio (“MLR”) at 18.83% in the first half of 2022, above the adjusted statutory requirement of 16.0% (from 20.0%). Over the last five years, the Bank’s net book value per share net of preferred shares has grown 6.7% per year, from ₱14.56 in the first half of 2017 to ₱20.12 in 2022.
“PBB earned ₱620.3 million net income in the first half of 2022, a solid improvement from last year’s income of ₱524.0 million. Total revenues expanded in the first half of 2022 to ₱3,287.7 million from ₱3,174.3 million showcasing the Bank’s capability to generate income. Profit before tax ended at ₱854.2 million, up 12.2% YoY. On the balance sheet side, PBB’s loan portfolio grew 10.6% as credit activity began to gain momentum with the easing of restrictions and the resulting improvements in market demand. Deposit liabilities also increased to ₱104.9 billion while maintaining CASA:TD ratio of 58:44.
For the rest of the year, PBB’s positive results should continue to benefit its bottom-line. The Bank’s focus on serving the SME market while sustaining a healthy expansion of risk assets continues. Following the annual stockholder’s meeting, PBB received stockholders’ approval to increase its authorized capital stock from ₱10.0 billion to ₱15.0 billion. Certain changes to our preferred shares also offer us the flexibility to manage our balance sheet and funding cost. These are the steps the Bank has taken in raising its capital to further support the continued development of the Bank’s businesses and expand its business initiatives. A bigger capital base will help the Bank capitalize on opportunities PBB is seeing from its deal pipeline,” said Roland Avante, Vice chairman, president, and CEO of Philippine Business Bank.